Facebook launches new digital currency

The currency, called Libra, will bring blockchain-based payments to the mainstream.
2:34 | 06/18/19

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Transcript for Facebook launches new digital currency
And we move on to Facebook a big move for the platform today the company announcing it will launch its own digital currency that will allow you to buying things or send money with virtually no fees it's called leave bra. So want to bring in Matt Katz season news editor over at digital trends. Matt good to see you again just want you to explain. Exactly how this all work. Sure so FaceBook is launching what's essentially a crypto currency see you can think about it. Kind of like bitcoin but a little bit more controlled. They are partnering with a bunch of really big name payment companies like vis then no master card. To create a currency that you'll be able to. Buy and sell things with through Facebook's platforms. Messenger what's app. And are also launching an app that you'll be able to use this currency. To send to all sorts of different people of the world. I'm and I have to ask you this why does FaceBook need its own currency lies as necessary. Well as we wrote in that digital trends that com today it's kind of like Disney bucks if you think about it. So FaceBook wants to keep all of the payments that are made on FaceBook within FaceBook want to keep you in its ecosystem. Com so all of a sudden if you've got a currency that works on FaceBook within the FaceBook messenger of the FaceBook marketplace. You don't need to use dollars or anything like that no keep you within that FaceBook infrastructure for your payments for a year your marketing for everything that you need. Which is kind of their goal over all they want to keep you on FaceBook or on FaceBook own platforms for as long as they possibly can. It seems like it's closer to a version of PayPal rather than light bitcoin. When you think that's. Yet that's a really good way of putting it it's similar to PayPal and Mo bald you know been Mo is involved in in nests. Com so it's something that you'll be able to use as an apt to send money this kind of the opposite of how bitcoin works right now. Bitcoin has always been seen as very decentralized platform so there's no big Central Bank it is controlling the money FaceBook is is a little bit hands off in that they have third party consortium. That's supposed to be in charge of this crypto currency. But your rate it is something that seems a lot more like a traditional currency to your descending through an apt as opposed to a bitcoin that your. Very decentralized you don't really know who has control over what. IRA so we'll be looking out for that.

This transcript has been automatically generated and may not be 100% accurate.

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