Libra, Facebook's virtual currency, will be operational by 2020

Facebook presents Libra to the world: it arrives in 2020 and aims to revolutionize the financial system by challenging its rival Bitcoin and, in the long term, the supremacy of the dollar. Mark Zuckerberg's cryptocurrency will be based on 'traditional' currencies such as the euro, thus avoiding the fluctuations in value of its competitors. And it will be easy to use, as easy as sending messages and photos, assures Facebook's CEO. The social network project can count on as many as 27 'important friends' who will help it create a "safe and reliable" cryptocurrency. They range from Visa to Mastercard, from Uber to Spotify, from Vodafone to Iliad. In an attempt to forestall privacy criticism and overcome skepticism, Facebook is distancing itself from the direct management of Libra, which is entrusted to the non-profit Libra Association. Furthermore, anyone who wants to buy Zuckerberg's cryptocurrency will have to do so through Calibra, a Facebook subsidiary, by presenting a document issued by the government. This is a necessary requirement to avoid the risk of a black market with suspicious or illegal transactions, which is the real scourge of Bitcoin's reputation. Calibra will not be allowed to share customers’ financial information with any other Facebook division. “Your financial data will never be used for targeted advertising on Facebook,” assures Kevin Weil, vice president of products at Calibra. Libra is based on blockchain technology, made famous by Bitcoin. Consumers will be able to keep the cryptocurrency in their electronic wallets or spend it with companies that accept it. Libra can also be quickly converted into traditional currencies and sent to your bank accounts. The revolution of Libra is partly linked to its great accessibility: those who do not have a current account will be able to have and spend it, and this opens it to new markets especially among developing countries. “Our hope is to create greater access to better, affordable, and open financial services regardless of who you are, where you live, what job you do, or how much you have,” says Libra Association. Even though Libra is independent from Facebook, the social network still intends to 'make money' out of it: Calibra, if Libra is successful, could end up offering financial services to consumers, such as loans and investments. And that's good news for Wall Street, where Facebook shares are up 2%. The announcement of Libra also boosts Bitcoin, which sees in Zuckerberg's cryptocurrency the possibility of finally reaching the general public. But the road for Facebook and its ambitious project is anything but downhill. In the crosshairs for repeated privacy scandals, the social network will have to convince skeptical financial authorities of the soundness of its project and its ability to ride the thin line that Libra places between finance and technology. And the governor of the Bank of England, Mark Carney, suggests that the road is uphill: Libra is part of the “payments revolution” and central banks must be aware of new developments in order to ensure they can maintain monetary and financial stability. “It needs to be subject to the highest standards of regulation,” Carney says. We will evaluate it closely and at the coordinated level of the G7, BRI, FSB and IMF. Open mind, but not open door."