Finance, privacy experts skeptical of Facebook’s Libra cryptocurrency

Facebook’s choice of the name “Libra” for its new cryptocurrency venture is apt, because experts and consumer advocates say it will take quite a balancing act for the social media giant to pull it off.

The company announced that it will lead a nonprofit collaborative — the Geneva-based Libra Association — of 27 organizations, including tech companies and payment providers like Visa, PayPal, Uber and Spotify, with the goal of launching Libra in the first half of 2020.

Read more from NBC News:

What Facebook’s Libra could mean for consumers

Unlike the fluctuating valuations that characterize many of the better-known cryptocurrencies, Facebook execs said the value of Libra would be tied to government-backed funds, making it relatively stable. Facebook said it won’t manage the Libra currency itself, but it will create a digital-wallet division it dubbed Calibra.

The company also said it wouldn’t use purchase information to target ads to users because the two divisions would be separate,…

Have a comment? Type it below!