https://realmoney.thestreet.com/investing/technology/facebook-libra-cryptocurrency-what-investors-should-know-14995359 Though only time will tell how much the Libra cryptocurrency disrupts the payments industry's status quo, no one can accuse Facebook (FB) of not taking the development of Libra seriously.
As you likely know by now, Libra, a cryptocurrency that will launch in 2020 and whose value will be tied to a basket of existing currencies, was unveiled to much fanfare on Tuesday morning. Also unveiled: The Libra Association, a non-profit governing organization for the cryptocurrency, and Calibra, a Facebook subsidiary that will provide financial services relying on Libra, starting with a digital wallet service that will be available both through a standalone app and via Facebook Messenger and WhatsApp.
Facebook's shares, which had rallied in recent days as fresh media reports about Libra arrived, fell 0.3% in Tuesday trading amid a 1.4% gain for the Nasdaq. Payments incumbents Visa (V) , Mastercard (MA) and PayPal (PYPL) , all of which are among the 28 firms that are initially part of the Libra Association, were flat to down slightly.
Though some additional details still need to be shared about Libra and its backers, Facebook and the Libra Association did disclose quite a lot about their project. Here are some things that investors and would-be Libra users should keep in mind about the cryptocurrency.
1. Facebook Won't Control Libra
2. Transaction Fees Will Be Very Limited
3. Facebook Is Taking a Long-Term Approach to Monetizing Libra
4. Libra Will Rely on Interest Payments and 'Incentives' to Compensate its Initial Backers
5. On Paper At Least, Libra Has a Strong Set of Supporters
6. Libra Could Be Subject to Some Currency Volatility
7. Libra Isn't Really a Rival to Bitcoin
Topic: Facebook's Libra Cryptocurrency Project: 7 Key Things Investors Should Know (Read 326 times)