Facebook has revealed plans to build an alternative financial system based on a cryptocurrency.
Libra was announced with 27 partners, including Mastercard and Uber. Facebook aims to launch the cryptocurrency with 100 partners next year.
The company hopes that Libra will become the foundation for a financial system that is not controlled by banks.
Libra will be backed by government currencies, so it will not fluctuate more than real-world money, unlike Bitcoin.
The project will be run by a non-profit entity in Switzerland, independent of Facebook, as Facebook is distancing itself from direct management of Libra.
This is in order to protect the privacy of people who use the currency. Facebook promises that users’ financial data will never be used to target ads on its platform.