What's most likely is that Libra coins will initially be used to store the savings of people in emerging economies that suffer from high inflation, such as Venezuela.
Libra will exist entirely in digital form. Unlike most cryptocurrencies now out there, Facebook's Libra will be backed by a reserve of real assets, which means its value will remain largely stable. "Two billion people will now be much more open to Bitcoin and other altcoins", said Jasper Lawler, head of research at London Capital Group.
The Libra will be managed by a new Facebook subsidiary dubbed Calibra. According to Facebook, the wallet will allow you to save and spend Libra, in addition to sending it instantly at "low to no cost". Additional services will be provided to those using Libra later on, including the option to pay their bills.
Analysts say Libra's release is an encouraging sign for the industry and it could lead to mass adoption of other cryptocurrencies.
Bitcoin is known for its wide price fluctuations, but the price of Libra is expected to be more stable. "It is frankly baffling to me that a company with a massive data privacy problem launched a non-private global currency", said Matthew Green, associate professor of computer science at the Johns Hopkins Information Security Institute in the USA, via Twitter.
Bank of England Governor Mark Carney said Facebook´s new currency would have to withstand scrutiny of its operational resilience and not allow itself to be used for money laundering or terror financing.
"Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data", she said in a statement.
How will I get Libra?
A US regulatory source briefed on the matter said Facebook had been in communication with USA regulators but added it was still unclear how the currency would be structured and whether it would directly fall under any existing USA regulatory regimes.
"We certainly see long-term value for Facebook", Barel said.
In April, Canada's federal privacy watchdog announced plans to take Facebook to court following an investigation into the platform's privacy practices that revealed more than 620,000 Canadians had their data improperly shared during the Cambridge Analytica scandal. Germany's antitrust authority already issued a warning to Facebook about its behavior earlier this year, ordering the company to quit merging user data collected through Instagram, WhatsApp, Messenger, and the millions of third-party websites that track users on behalf of Facebook through "like" and "share" buttons with those users' Facebook profiles.
"We understand we have to earn your trust", read his tweet.
It's a big day in the technology world.
How could it benefit users?
Company officials emphasized that Libra is a way of sending money across borders without incurring significant fees, such as those charged by Western Union and other global money-transfer services.
There is no official launch date for Facebook's digital wallet app or cryptocurrency, nor has the company said whether it will be available globally right away.