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Technology Here's what you need to know about Facebook's controversial Libra cryptocurrency

01:00  25 october  2019
01:00  25 october  2019 Source:   cnet.com

Group that oversees Facebook's Libra cryptocurrency launches bug bounty

Group that oversees Facebook's Libra cryptocurrency launches bug bounty The Libra Association will pay researchers who find security flaws.

Facebook isn't getting any love for Libra . The social network and its planned cryptocurrency have endured a withering month as partners bolt from the project, details start to It' s unclear where Libra will go from here , though Facebook has indicated it will press on. Here ' s what you need to know .

Facebook says Libra is a “global currency and financial infrastructure”. In other words, it is a digital asset built by Facebook and powered by a new But Facebook is also likely to carry out what’ s known in cryptocurrency circles as an “air drop”, handing out small amounts of currency for free in

Facebook isn't getting any love for Libra . The social network and its planned cryptocurrency have endured a withering month as partners bolt from the project, details start to shift and legislators amp up their criticism of the ambitious plans. The concerns reached a crescendo on Wednesday, when a key US committee laid into CEO Mark Zuckerberg , using Libra as evidence of what they saw as the company's cavalier attitude toward everything from data breaches to misleading political ads.

Facebook and its partners plan to launch Libra, a new global cryptocurrency. Getty Images© Provided by CBS Interactive Inc. Facebook and its partners plan to launch Libra, a new global cryptocurrency. Getty Images

"As I have examined Facebook's various problems," California Rep. Maxine Waters told Zuckerberg as she opened a hearing before the House Financial Services Committee. "I have come to the conclusion that it would be beneficial for all if Facebook concentrates on addressing its many existing deficiencies and failures before proceeding any further on the Libra project."

International banks to scrutinize Facebook's Libra cryptocurrency

International banks to scrutinize Facebook's Libra cryptocurrency The digital currency will face questions from regulators.

What is Facebook ' s Libra Cryptocurrency ? In part 1 of this 2 part series we offer a neutral point of view on what it is and how it works! So, in this guide, we are going to be telling you all that you need to know about the cryptocurrency while keeping a neutral stance.

They're not called Zuckerbucks but Facebook just reinvented digital money. Facebook ' s Libra cryptocurrency that will launch early next year is more like

The day only got rougher for Zuckerberg, who sat through six hours of painful lecturing delivered as inquiry. Lawmakers on both sides of the aisle expressed concern about the association overseeing the Libra project being based in Switzerland, rather than the US, as well as what would happen with the data Facebook collected about Libra users. California Rep. Brad Sherman, a Democrat, called Libra a "powerful burglary tool." New York Democrat Nydia Velázquez referenced Facebook's early motto to move fast and break things, saying, "Mr. Zuckerberg, we do not want to break the international monetary system."

Facebook and its partners are launching Libra, a new global cryptocurrency.© CNET

Facebook and its partners are launching Libra, a new global cryptocurrency.

Zuckerberg, who managed to keep his cool even as legislators repeatedly interrupted him and joked about his haircut, stuck to his talking points. Libra, he told mostly but not unanimously skeptical representatives, would help the world's unbanked enter the financial system. And the US needed to lead in cryptocurrencies, he said appealing to American patriotism, rather than cede the field to China.

Facebook's Libra currency will get half its backing from the US dollar

  Facebook's Libra currency will get half its backing from the US dollar Facebook was quick to promise that its Libra cryptocurrency would have the stability of real-world money behind it, but whose money will dominate? It's now particularly clear. Facebook sent a letter to German politician Fabio De Masi explaining that the US dollar will represent 50 percent of the backing for Libra. The remaining support will come from the euro (18 percent), Japanese yen (14 percent), British pound (11 percent) and Singapore dollar (7 percent). If you were hoping for currency representation from more parts of the world, you'll be disappointed.This isn't surprising given Facebook's home turf and the usual strength of the US dollar.

शुक्रवार, 25 अक्तूबर 2019 Here ' s what you need to know about Facebook ' s Libra cryptocurrency | Blue Mother The project has run into headwinds. #Blue_Mother.

Libra is Facebook ’ s global digital currency that is intended in part to create inclusion for those without access to banking services. The Libra Association oversees the development of the Libra token, the reserve of real-world assets that backs the cryptocurrency , and the rules that govern the blockchain.

It's unclear where Libra will go from here, though Facebook has indicated it will press on. Here's what you need to know.

Why does Facebook want to have a cryptocurrency?

This isn't actually Facebook's cryptocurrency. It's the project of the Libra Association, which Facebook co-founded. The association, which will serve as a monetary authority for the cryptocurrency, says Libra's purpose is to "empower billions of people," citing 1.7 billion adults without bank accounts who could use the currency.

The Libra logo. Libra Association© Provided by CBS Interactive Inc. The Libra logo. Libra Association

But Facebook has its own interest in digital cash that predates Libra. The social network ran a virtual currency, called Credits, for about four years as a way to make payments on games played within Facebook. In May Zuckerberg said that sending money online should be as simple as sending photos. Libra is designed to make it easier and cheaper for people to transfer money online, which might attract new users to the social network. In his testimony on Wednesday, Zuckerberg acknowledged that having people use Libra would likely drive up the cost of advertising on Facebook, which would benefit the company.

WSJ: Visa, Mastercard are reconsidering support for Facebook Libra

  WSJ: Visa, Mastercard are reconsidering support for Facebook Libra It has been a few months since Facebook officially announced its "Libra" cryptocurrency push with support from some big names including Visa and Mastercard. Since then we've heard little about it other than increasing scrutiny from regulators, bankers and politicians around the world, while those partners have mostly remained quiet. The Wall Street Journal reports today that executives from unnamed partner companies have refused to support Libra publicly, despite requests from Facebook for them to do so. It claims, based on anonymous sources, that Visa, Mastercard and others are now reconsidering their involvement altogether.

Facebook ' s new cryptocurrency , which is codenamed Libra , is targeted at developing countries and is slated for launch by the first quarter of 2020. Picture credit: The Block. Here ' s all you need to know . The cryptocurrency , codenamed Libra , will be administered by financial organisations like

Facebook and several other billion-dollar corporations that are part of the Libra Association, including Lyft, Uber, Visa, and more, are introducing a new cryptocurrency in 2020— Libra . The announcement was met with criticism and significant questions from government officials and regulators.

Facebook may also have other plans for Libra. A new subsidiary, called Calibra, will run a wallet that will be necessary in the initial rollout. "Facebook created Calibra, a regulated subsidiary, to ensure separation between social and financial data and to build and operate services on its behalf on top of the Libra network," according to a white paper describing the Libra project. Analysts at RBC Capital Markets say those services will likely include games and commerce.

Will Facebook have direct control over the new cryptocurrency?

No. Facebook is one of the members of the Libra Association, the nonprofit that will serve as a de facto monetary authority for the currency. (Facebook's membership is through Calibra.) The association hopes to grow to 100 members, most of which will pony up $10 million to get the project going. Each member has the same vote in the association, which is headquartered in Switzerland. So Facebook won't have any more say over the association's decisions than any other member.

PayPal withdraws from association overseeing Facebook's Libra cryptocurrency

  PayPal withdraws from association overseeing Facebook's Libra cryptocurrency Libra has faced regulatory scrutiny from lawmakers.The move by PayPal underscores the challenges that Facebook and its partners that are part of the Libra Association face as the group tries to get the cryptocurrency off the ground.

Facebook ’ s Libra cryptocurrency is on the blockchain but does not behave the way Bitcoin does. Libra is tied to fiat currency to tackle wild fluctuations in Although Facebook says Libra will not have access to personal user data, the company will still know how much users have in their wallet, as well

Facebook has announced their new crypto currency (digital currency); Libra ! Here ' s info on what it is, what it means and my thoughts on the impact to share price Facebook Libra Coin - Everything you NEED To Know ! - Facebook Cryptocurrency Globalcoin - Продолжительность: 21:28 MaxDapp 1

That said, Facebook will play an outsized role in the initial phases of the Libra project. In addition to running the Calibra wallet, Facebook expects to "maintain a leadership role through 2019." After the network is launched, Facebook says, the social network's role and responsibilities will be the same as those of any other founding member.

You said something about members of the association dropping out. What's that about?

Yup. Some of the bigger founding members appear to have gotten cold feet. Seven of the original 28 founding members -- that's a quarter of them -- dropped out before the Libra Association's inaugural meeting in Geneva on Oct. 14. The exits included PayPal, eBay, Stripe and financial services giants Visa and Mastercard. The departures are big losses because they brought expertise in payments and transfers technology. The other dropouts are Mercado Pago, the online payments platform of Argentina's Mercado Libre marketplace, and Booking Holdings, an online travel company that runs sites including Priceline, Kayak and OpenTable.

In a statement, the Libra Association suggested it would weather the departures.

"Although the makeup of the association members may grow and change over time, the design principle of Libra's governance and technology, along with the open nature of this project ensures the Libra payment network will remain resilient," Dante Disparte, the Libra Association's head of policy and communication, said in a statement.

eBay, Stripe and Mastercard pull out of Facebook's Libra cryptocurrency

  eBay, Stripe and Mastercard pull out of Facebook's Libra cryptocurrency Stripe, eBay and Mastercard have followed PayPal in backing out of Facebook's cryptocurrency, Libra. They confirmed to the Financial Times that they would pull their support. "We highly respect the vision of the Libra Association; however, eBay has made the decision to not move forward as a founding member," eBay said in a statement. "At this time, we are focused on rolling out eBay's managed payments experience for our customers." "Stripe is"We highly respect the vision of the Libra Association; however, eBay has made the decision to not move forward as a founding member," eBay said in a statement. "At this time, we are focused on rolling out eBay's managed payments experience for our customers.

How is Libra different from other cryptocurrencies?

Let's start by addressing how Libra is similar to other cryptocurrencies, such as bitcoin and ether. Like them, Libra exists entirely in digital form. You won't be able to get a Libra note or coin. And like other cryptocurrencies, Libra transactions are recorded on a software ledger, known as blockchain, that confirms each transfer. The Libra blockchain will be managed by the founding members in the early stages but evolve into a fully open system in the future.

a screenshot of a cell phone: Here's what the Calibra wallet is expected to look like on a phone. Facebook© Provided by CBS Interactive Inc. Here's what the Calibra wallet is expected to look like on a phone. Facebook

Unlike bitcoin, Ethereum and some other cryptocurrencies, which aren't backed by anything and swing wildly in response to speculation, Libra will be pegged to real assets, a format widely known as a "stablecoin." (Zuckerberg acknowledged as much to lawmakers.)

Initially, the plan was to use a basket of assets to anchor Libra's value. The Libra Association hasn't said what those assets will be but indicated they will include "bank deposits and government securities in currencies from stable and reputable central banks." That suggests major global currencies, like the dollar and the euro, which don't fluctuate violently day to day. The association will buy more of the underlying assets and create, or "mint," when people want to buy Libra. It will pay people and destroy, or "burn," Libra, when people are cashing out.

Lately, David Marcus, Facebook's blockchain chief, has suggested that Libra could take on multiple denominations based on single currencies, rather than the initially proposed basket. "We could do it differently," Marcus said during a banking seminar, according to Reuters. "Instead of having a synthetic unit ... we could have a series of stablecoins, a dollar stablecoin, a euro stablecoin, a sterling pound stablecoin, etc."

Facebook's Libra loses one more member as its council becomes official

  Facebook's Libra loses one more member as its council becomes official Facebook couldn't avoid losing another Libra Association member before it formalized the cryptocurrency's council. Booking Holding, the company behind Booking.com, Kayak and Priceline, has withdrawn from the Libra Association just before the organization's members signed the council charter, elected its Board of Directors and appointed executive team members. The move leaves 21 initial members, including Facebook's own Calibra wallet as well as Lyft, Uber, Spotify and telecoms like Iliad and Vodafone.PayPal, eBay, Mastercard, Visa and Stripe were some the most prominent companies to pull out, each of them leaving within days of each other.

Backing a currency with an asset isn't anything new. In fact, it used to be common. The US dollar was backed by gold until 1971. The value of the Hong Kong dollar is pegged to the US dollar and managed by a currency board, which can issue new notes only if it has enough in reserves.

How do Libra and other cryptocurrencies compare to the US dollar?

The US dollar is tried and true and pretty much accepted anywhere in the world. Some countries like the greenback so much that they use it instead of their own money. And dollars earn interest, though at current rates that won't add up to very much.

Of course, the dollar has weaknesses. Using dollars, particularly across borders, can be expensive because banks take a cut to convert them into local currencies. If you're using dollars on a prepaid card, the credit card company is probably charging the merchant a portion of your purchase. And if the US government prints too many dollars, inflation could follow.

Despite the hype, cryptocurrencies aren't widely used. Try buying a cup of coffee with ether. (Yes, it's possible. But not widespread.) The value of cryptocurrencies is volatile, often rising or falling more than 5% a day, making it difficult to get a sense of the long-term worth of the asset.

Cryptocurrencies can make it easy to send money directly to someone. Though not private, cryptocurrencies can be pseudonymous. Some cryptocurrencies, notably bitcoin, have a cap on the number of coins that can be minted, meaning that owners of existing coins don't have to worry about the arbitrary creation of new ones.

Is this just a ploy so Facebook can get its hands on my financial data and send me even more precisely targeted ads?

We hear you. Facebook doesn't have a great reputation for privacy protection.

The social network says don't worry ... not that you expected it to say anything else. Calibra, the maker of the wallet you'll need to use Libra, is set up as a subsidiary of Facebook. The arrangement allows for Calibra to be regulated by authorities to prevent money laundering and other financial crimes. But it will also keep Calibra's financial data separate from Facebook's social data, according to the company.

Facebook's Libra may look to multiple digital coins based on national currencies

  Facebook's Libra may look to multiple digital coins based on national currencies David Marcus, Facebook's blockchain boss, reportedly says the main goal is creating a more efficient payments system. Libra took a hit earlier this month as several of founding members of the Libra Association, the nonprofit overseeing the project, dropped out, including PayPal, eBay, Stripe, Visa and Mastercard. The departures come amid mounting criticism of the Libra project, which was unveiled in June and immediately met skepticism from politicians, regulators and nonprofits.The Libra Association declined to comment. Facebook didn't immediately respond to a request for comment.

  Here's what you need to know about Facebook's controversial Libra cryptocurrency © Provided by CBS Interactive Inc.
Is Facebook spying on you?

Calibra says explicitly that customer data won't be used to improve ad targeting, Facebook's money spinner. "Calibra customers' account information and financial data will not be used to improve ad targeting on the Facebook Inc. family of products," it said in a release.

The company says it will share customer data with third parties only in limited cases, such as to comply with the law, prevent fraud or facilitate payments. It also says Calibra will seek customer consent before using Facebook data to improve features.

Facebook's video calling smart display connects you with friends and family

Originally published June 18, 2 a.m. PT.

Updates, 12:15 p.m.: Adds reaction from European officials; 4:05 p.m.: Includes reactions from US officials; June 19: Adds comments from Markus Ferber; 1:08 p.m.: Includes scheduling of Senate hearing; July 3: Adds David Marcus comments; July 15: Includes information about government hearings; Oct. 24: Adds news of Zuckerberg's testimony, includes section about partners dropping out of Libra.

Facebook's Libra may look to multiple digital coins based on national currencies .
David Marcus, Facebook's blockchain boss, reportedly says the main goal is creating a more efficient payments system. Libra took a hit earlier this month as several of founding members of the Libra Association, the nonprofit overseeing the project, dropped out, including PayPal, eBay, Stripe, Visa and Mastercard. The departures come amid mounting criticism of the Libra project, which was unveiled in June and immediately met skepticism from politicians, regulators and nonprofits.The Libra Association declined to comment. Facebook didn't immediately respond to a request for comment.

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