Will Facebook’s attempt to shake up global finance pay off?

The social network is trying to reinvent money in a move aimed squarely at the unbanked in emerging markets

The tech giant has had to deal with a number of privacy scandals over the past year (AFP)

Facebook has put a crypto cat among the digital-currency pigeons with the launch of Libra, its much anticipated new digital coin. The venture is being pitched at what people like to describe as “emerging markets”, which tend to contain significant numbers of people who lack access to banking services, and is what’s known as a “stablecoin”.

What that means is that it will – as distinct from, say, bitcoin – be underpinned by a basket of global currencies and securities. The aim is to ensure that its valuation doesn’t move like the latest Disney theme park rollercoaster, which would severely crimp its ability to serve as a unit of exchange as opposed to a unit of speculation.

Facebook has also been at pains to nix any impression that it’s a means for the empire to extend the reach of the dark side of the data force, despite the lead role it has played in developing the thing, and the blockchain software it will run on.