Facebook (NASDAQ:FB) Cryptocurrency Libra Is On The Horizon


Companies and indices mentioned:


According to media reports Facebook Inc (NASDAQ: FB) is on the brink of announcing its cryptocurrency.

Founded in 2004, Facebook is the world’s largest social media technology business, with names like Instagram, WhatsApp and Oculus also part of its stable of brands. Over 2 billion people use Facebook once per month, with Facebook’s core platform boasting more than 1.5 billion users. Across all of its major brands, including Messenger, 2.7 billion people now use Facebook products.

Facebook Set To Launch Libra Cryptocurrency

According to widespread media reports Facebook is expected to announce it’s cryptocurrency tomorrow, 18 June 2019 US time.

The cryptocurrency will reportedly be called Libra and is from a consortium with other large companies, including Visa, Mastercard, Paypal and Uber. With each company fronting up $10 million each to be involved.

The new currency hopes to avoid the pitfalls of other cryptocurrencies, such as bitcoin. Facebook has reportedly sought blessings from the US Treasury and Bank of England, the BBC reported last month.

It also hopes to further separate itself from cryptocurrency stigma by being pegged to a number of government-issued currencies, in the hopes to stabilise the virtual currency and avoid large fluctuations in value which is a notorious issue for crypto.

This could be a clever move for Facebook, integrating payments into its platforms with one universal payment system, similar to the giant Chinese platform WeChat. Although there have been questions over Facebook’s ability to handle personal information, with many privacy concerns in recent times.

Is Facebook A Buy?

This is brand new territory for currency with a global giant, backed by other global giants, creating their own virtual currency. It will be interesting to see what Facebook can achieve with it. Facebook probably has widespread plans to disrupt many current payment methods.. or Libra could go the way of bitcoin.

If Facebook is about to steal some of the payment pie then shares like Afterpay Touch Group Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P) and Splitit Ltd (ASX: SPT) may have to fight even harder to win market share.

Either way, I’m happily watching from the sidelines with curiosity for the currency technologies of the future that businesses are experimenting with today.

For now I’m focusing my money on ASX-listed investments that can give me a slice of all of the pies, like the one listed in our free report below.

At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.

3 stocks to own in July 2020...

Amidst the COVID-19 confusion, there are some companies still growing FAST (think: online meetings through Zoom, streaming companies like Netflix and eHealth services provided by Teledoc).

While the world grapples with COVID-19, some companies are still growing rapidly. The entire cloud computing market is valued around $US210 billion but if you ask me, it seems clear as day that this market is only going to get bigger in 2020 and beyond.

That's why our top investment analyst has just identified 3 growth stocks in a net cash position, with strong competitive forces... and obvious tailwinds at their back. He owns all three of them right now!

Claim a FREE investing report on our analyst's "3 best share ideas for the cloud revolution" when you create a free Rask Australia account.

Our report is 100% free and unlocks hundreds of hours of bonus content.

Simply click here to access the report.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.