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RandomFactor writes:

Planned for unveiling next week, Facebook plans to launch a new crypocurrency dubbed 'Libra' in 2020.

Facebook has secured the backing of over a dozen companies for its upcoming Libra cryptocurrency set to be announced next week, The Wall Street Journal reports. These companies include major financial organizations like Visa and Mastercard, and internet darlings like PayPal, Uber, Stripe, and Booking.com. Each will invest around $10 million to fund development of the currency, and will become part of the Libra Association, an independent consortium that will govern the digital coin independently of Facebook.

Backing from major financial entities such as Paypal, Mastercard and VISA is a new twist.

The new cryptocurrency is intended to function as a "stablecoin" to improve stability and make it more attractive to users in developing countries. A stablecoin is

designed to minimize the volatility of the price of the stablecoin, relative to some 'stable' asset or basket of assets. A stablecoin can be pegged to a currency, or to exchange traded commodities (such as precious metals or industrial metals). Stablecoins redeemable in commodities are said to be backed[.]

The plan for Libra is to

[allow] users to send money over Facebook's messaging products like WhatsApp and Messenger, Facebook hopes that its partnerships with e-commerce firms will allow users to spend the currency online. The company is reportedly also looking into developing ATM-like physical terminals for people to convert their money into Libra.

Is privacy considered a social norm in financial dealings?

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