Facebook has announced it is creating a digital currency which is expected to be in flotation by the middle of 2020. Known as ‘Libra’ the currency will work the same as other cryptocurrencies using blockchain technology. The alarming difference though with ‘Libra’ is that it is backed by ‘fiat’ currencies which is unlike all other cryptocurrencies. Fiat currency is government-issued currency that is not backed by a physical commodity such as gold. It is money that is recognised by and backed by governments around the globe. The currency will work through a new app called ‘calibra’ which will essentially work as a digital wallet that stores all of your money.
This comes at the same time that Westpac announced it had closed right wing activist Blair Cottrell’s bank account. The political purge has now moved from speech to the financial sector and does not look like slowing down with Facebook creating its own currency.
This latest attempt at global control comes along with the ongoing demonitising and censorship of right wing journalists on Facebook. One begs the question of who exactly will be able to use this fiat crypto currency, which is the first of its kind in the world.