How to make money off facebook libra

The social media giant announced that it will launch its new cryptocurrency in faceboik first half of As an investment, it’s likely to fall flat. Social media giant Facebook announced in June that it would launch Libra, a new cryptocurrency, in the first half of next year. So what is Libra? How is it different from other cryptocurrencies? And are there investment opportunities in this new virtual currency? It could face steep opposition in Congress and from governments around the world. And although there are some indirect ways to invest in the crypto boom, these, too, are highly speculative. How is Libra different from Bitcoin?

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Facebook does not expect its new cryptocurrency project, Calibra, to be a moneymaker right away, David Marcus, the head of the group, said in prepared remarks released ahead of a Tuesday hearing with U. The company has acknowledged concerns about its cryptocurrency ambitions, following a series of privacy scandals in the last couple years that tarnished the public’s trust in Facebook. Marcus has attempted to calm anxieties around Calibra by downplaying its financial incentive in the project and instead emphasizing its social mission. He said that Facebook won’t make money in the early phases of Calibra and will ensure that «customers’ account and financial information will not be shared with Facebook, Inc. According to his prepared remarks, Marcus is focused on addressing concerns about both Facebook’s goals with Calibra and cryptocurrencies in general. After a number of crypto-related companies proved to be scams and investors lost money betting on niche coins, Marcus is assuring policymakers that Libra, the new currency, «is a payment tool, not an investment. People will use it to send money to family members in other countries, for example, or to make purchases. Facebook is also setting out to convince officials that the currency is secure and will work adequately with governments and currencies around the world. Policymakers have expressed skepticism since Facebook announced Calibra in June. Federal Reserve Chairman Jerome Powell said, «Libra raises serious concerns regarding privacy, money laundering, consumer protection, financial stability. Facebook has attempted to soften the connection between its own brand and the new currency by bringing other companies into the fold. Founding members of the project include 27 other companies and organizations such as payments firms Visa , Stripe and PayPal as well as tech companies such as eBay , Lyft , Uber and Spotify. Marcus pointed out that Facebook will have one vote like other founding members «and will not be in a position to control the wholly independent organization. Still, Marcus acknowledged that Calibra will help Facebook because it will enable transactions for the platform’s many users. Sign up for free newsletters and get more CNBC delivered to your inbox. Get this delivered to your inbox, and more info about our products and services. All Rights Reserved. Data also provided by. Skip Navigation. Markets Pre-Markets U. Key Points. In his prepared testimony for a Senate committee hearing, Facebook’s David Marcus said the company will not immediately profit from Libra. Facebook has tried to assuage fears of lawmakers and the public by emphasizing that it’s just one player in a consortium of companies that will manage the cryptocurrency’s launch. VIDEO

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Facebook shares were up 1. Those areas are peer-to-peer payments, commerce, applications and gaming, with the token delivering speedy transactions for users regardless of the status of the fiat currency where they’re located. At present, advertising accounts for the vast majority of Facebook’s revenue. That could involve facilitating cross-border payments and charging a fee, or even offering their own financial services for which they could set their own interest rates, Tsai speculated. Tsai echoed that notion. Want to be alerted before Cramer buys or sells these stocks?

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Facebook has finally revealed the details of its cryptocurrency, Libra, which will let you buy things or send money to people with nearly zero fees. Today Facebook released its white paper explaining Libra and its testnet for working out the kinks of its blockchain system before a public launch in the first half of The association will promote the open-sourced Libra Blockchain and developer platform with its own Move programming language, plus sign up businesses to accept Libra for payment and even give customers discounts or rewards. In cryptocurrencies, Facebook saw both a threat and an opportunity. They held the promise of disrupting how things are bought and sold by eliminating transaction fees common with credit cards. Meanwhile, the 1. Their unanchored price was susceptible to huge and unpredictable swings, making it tough for merchants to accept as payment. And cryptocurrencies miss out on much of their potential beyond speculation unless there are enough places that will take them instead of dollars, and the experience of buying and spending them is easy enough for a mainstream audience. Now Facebook wants to make Libra the evolution of PayPal. Libra could also power tiny microtransactions worth just a few cents that are infeasible with credit card fees attached, or replace your pre-paid transit pass. Facebook has built a reputation for over-engineered, underused products. By now you know the basics of Libra. Cash in a local currency, get Libra, spend them like dollars without big transaction fees or your real name attached, cash them out whenever you want. So the social network recruited the founding members of the Libra Association, a not-for-profit which oversees the development of the token, the reserve of real-world assets that gives it value and the governance rules of the blockchain. The Libra Association is based in Geneva, Switzerland and will meet biannually. The country was chosen for its neutral status and strong support for financial innovation including blockchain technology. To join the association, members must have a half rack of server space, a Mbps or above dedicated internet connection, a full-time site reliability engineer and enterprise-grade security. And only up to one-third of founding members can by crypto-related businesses or individually invited exceptions. The Libra Association will be responsible for recruiting more founding members to act as validator nodes for the blockchain, fundraising to jump-start the ecosystem, designing incentive programs to reward early adopters and doling out social impact grants. This provides a level of decentralization that protects against Facebook or any other player hijacking Libra for its own gain. By avoiding sole ownership and dominion over Libra, Facebook could avoid extra scrutiny from regulators who are already investigating it for a sea of privacy abuses as well as potentially anti-competitive behavior. We are committed to a dialogue with regulators and policymakers. The Libra Association maintains this basket of assets and can change the balance of its composition if necessary to offset major price fluctuations in any one foreign currency so that the value of a Libra stays consistent.

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Libra is like cash that lives inside your phone. And some Libra wallet apps and shops will give bonus discounts or free coins for signing up and paying with Libra. In fact, Facebook is building its own Libra wallet app called Calibra that will live inside of WhatsApp, Facebook Messenger and its own standalone app.

So Facebook set up a new company also called Calibra that will keep all your financial data separate from your Facebook profile. At any time, you can cash out of Libra and get your local currency back in your bank account, or handed to you at a local how to make money off facebook libra store. But how does the Libra cryptocurrency technically work…without a bunch of blockchain buzzwords?

Libra is coded to have a stable price, be secure and be controlled not just by Facebook. Instead, Libra is run by the member Libra Association that it hopes will how to make money off facebook libra to members by the time it launches in the first half of Financial companies like Visa and Mastercard, merchants and apps like eBay and Lyft, venture capital funds like Andreessen Horowitz and Union Square Ventures and nonprofits like Kiva are all members.

Each time you cash in a dollar, that money goes into a big bank account called the Libra Reserve that creates and sends you roughly one Libra token. The Libra Reserve is made up of a collection of the most stable international currencies, like the U. The idea is that even if one of those currencies goes up or down in price, the value of the Libra will stay stable. That way, shops will accept the Libra as payment without worrying the value of the coin will drop tomorrow.

Libra can also handle 1, transactions per second, while Bitcoin can only handle 7. So how do Facebook and the other Libra Association members earn money? Off of interest on all the assets held in the Libra Reserve.

After the Libra Association pays for its operations and investments in technology, members earns a cut of the remaining interest in proportion to how much they invested when they joined. If Libra gets popular, tons of people cash in and the reserve grows huge, the interest could add up to serious revenue for Facebook.

Ninety million small businesses already have Facebook Pages, but Facebook only has 7 million advertisers. The big risk of Libra is that anyone will be able to develop apps for it. That could lead to another Cambridge Analytica situation. But instead of some shady app maker snatching your personal info, they could steal your digital currency. But if Facebook succeeds, the real win could be for the 1. There are plenty of reasons to worry that Libra could give Facebook and other tech giants more power or lead to people getting scammed.

But it could also give disadvantaged people everywhere a way to join the modern economy. Facebook announces Libra cryptocurrency: All you need to know. Video by Gregory Manalo, b-roll via Libra Association. Watch our handy video above or read the transcript .

Why Facebook Wants Control of Your Money: Libra Coin

Welcome to Libra Watch to find out. The Libra mission A simple global currency and financial infrastructure that empowers billions of people. Reinvent money. Transform the global economy. So people everywhere can live better lives. Libra is for everyone Moving money around the world should be as easy and cheap as sending a text message. No matter where you live, what you do, or makee much you earn. Mobile Libra will be accessible to anyone with an entry-level smartphone and data connectivity. Stable Libra is backed by a reserve made to keep its value stable. Fast Libra transactions are quick and easy, no matter where you are sending, or spending, your money.