Facebook announced on June 18 a new digital currency called Libra it is hoping to launch in 2020, with a goal of one day Libra rivaling the U.S. dollar in use.  The idea is Libra would have low volatility and use costs.  This is a significant undertaking, and Facebook has rallied many other investors for assistance.  In reading some of the details, I couldn’t help comparing it to an attempt to return to a gold standard for a currency.  Instead of gold, Libra would be backed by a basket of stable assets.  These assets are unspecified, but would constitute bank deposits and government securities in currencies from stable and reputable central banks.  The idea is interesting, but it will be more interesting to see if the public will put its trust in a company that has taken some recent heat over privacy issues.

https://www.accountingtoday.com/opinion/facebooks-libra-is-live-what-cpas-should-consider-about-the-new-cryptocurrency

TAGGED: Cryptocurrency
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