Facebook beats you to the announcement to launch a self-developed crypto-currency, in the world of criticism. Politicians and consumer protectors are mainly concerned about data protection. Fears that Libra – as Facebook founder Mark Zuckerberg (35) is called, brings the digital money – the System of traditional banks to falter.

What is Libra?

Under the leadership of the 500-billion-group Facebook a consortium wants to create, among other things, with Visa, PayPal, Ebay, Spotify, or a new currency. Libra is supposed to be a kind of world currency – stable and can be used anywhere. Global transactions will be cheaper, faster, safer and of course easier. At least Facebook founder Mark Zuckerberg promises. The seat of the Libra Association is in Geneva. It monitors and controls the network.

How can I use the new currency?

not Yet. The currency is expected to come in 2020 in circulation. Facebook wants to make it consumer as easy as possible to exchange money between Libra and other currencies and to make transactions. So you should be able to Libra Transfers, for example, directly in Facebook’s chat services Whatsapp and Messenger are running. In a second step, services and products can be bought online. Later Libra will be able to owner of invoices or take out loans to pay. With a link to a Bank account in Libra can also be directly exchanged on the Smartphone in other currencies

What is the difference to Bitcoin is?

The new currency should not be an object of speculation. The most important difference to crypto-currencies like Bitcoin or Ether is that it is in Libra a so-called Stablecoin. The value of Facebook currency is linked currencies to the value of one or more Fiat, such as the U.S. Dollar or the Euro. As a result, extreme price fluctuations are to be avoided. The second major difference lies in the basic concept: Bitcoin is open and decentralized, anyone can about mining with high performance computers Bitcoins to print, so the analog of a Bank of virtual money. The Facebook solution, this is only the consortium in Geneva.

What could Libra fail?

today, there are Fintech companies, such as Revolut, for payments and transactions-cost Bank to offer alternatives. Since the opportunities in Africa, Asia or South America are likely to be larger where the access to the cell phone is easier than to Bank account. The biggest obstacle Facebook itself. The responsible for the project Manager, David Marcus (45) assures us, Facebook will have no access to the transaction data. The social Medium is, in particular, to the scandal of the Cambridge Analytica under massive pressure to improve data protection. However, it has a trust and credibility problem.

the new Facebook-money Makes the Swiss banks are broken?

Libra is first and foremost a payment processing system. Whether it is in need of a new currency, is questionable. You could also just use the Dollar. “The advantage of Facebook over payment systems, such as Twint is that the required App is already widely used in Start very far,” said Thomas Stucki (55), chief Investment officer of St. Galler Kantonalbank. Two billion people use Facebook. Nevertheless, Stucki doubts that the currency can replace the current payment systems completely.

What does this mean for the banks?

falls away When the System resets and the payments take place in the future without banks, access to the customer. “On the other hand,” says Stucki, “payments are only a small part of the services offered by the banks to their customers.” However, banks are earning good money with simple transactions, such as Transfers. Zuckerberg’s currency comes to the fly, comes the financial sector, especially in the case of cross-border money transfers, a more powerful competitor.

you Must have the Central banks are afraid of Facebook?

no, the new currency will be deposited in accordance with the concept with the existing Central Bank money in full. “So your value remains stable and not in danger of a roller coaster ride the crypto-currency Bitcoin to lie,” says Stucki. It is not created independently of the Central banks new money. However, Facebook has increased the pressure on Central banks and financial Supervisory authorities to seriously deal with digital currencies. This includes questions about money creation and exchange rates, but also to black money combat, as well as consumer and investor protection.