Facebook, the world’s largest social network, unveiled its Libra Association this week, which will serve as a launchpad for its cryptocurrency coming up in the near future.
The new organisation, which is based in Geneva, Switzerland, held its first meeting on Monday.
Unlike Bitcoin whose value is seen as volatile and unstable, Libra will only act as a means of payment, not a speculative currency, and will be backed by reserves of real and stable assets, such as the dollar or the euro, Bertrand Perez , Libra Association MD and COO, said.
Perez is a former executive of PayPal, one of the seven Facebook partners that left abruptly and wanted nothing to do with Libra. The others include Visa, MasterCard, eBay or Booking. It now has 21 members including PayU, Vodafone, Iliad, Uber, Spotify and Farfetch, among others.
Libra will be mobile, accessible to anyone with connectivity and a basic smartphone, Facebook seems to tell its two billion members via the Libra website. It will also be stable, it said.
Libra transactions are simple and fast, regardless of the destination of your payment or transfer, the company said.
Meanwhile in Europe, governments remained edgy as the news of the launch of the Libra Association spread from north to south and west to east.
France economy minister reacted quickly. “Any shortcomings in the functioning of this currency, in the management of its reserves could create considerable financial disorders,” warned Bruno Le Maire.