Facebook has announced that it will release details of its own cryptocurrency on Tuesday, reportedly with the endorsement of government and financial giants.
What will it be called?
The project is known as Libra. Libra Blockchain will combine several other US firms and, according to its owners, will provide “a simple global currency and financial infrastructure” that can be reached by billions.
How will it be distributed?
The initial rumour is Facebook will use its social media platform to send out its crypto. After it floats, the stablecoin will be sent through WhatsApp.
Initial public offering
According to Apollo Capital’s managing director and co-founder, Tim Johnston, the current rumour is Facebook’s crypto will be pegged at US$1. As a stablecoin, it should stay at that price.
What does this mean for crypto as a whole?
Apollo Capital’s co-founder and CIO, Henrik Andersson, believes the result will be a big positive for major cryptocurrencies such as bitcoin since Facebook will help get a cryptocurrency in millions of people’s wallet for the first time.
“Facebook has over 2 billion monthly active users. We anticipate this will be an enormous groundswell for people moving into crypto. Undoubtedly, many will start with Facebook Coin and move into other crypto assets, said Tim Johnston.
Is this a turning point for cryptocurrency?
Mr Andersson believes this could be a watershed moment for the currency. With Facebook having 2.38 billion active monthly users, it has the potential to onboard billions of customers to the alternative currency.