Bitcoin is really volatile, isn’t that a problem?

Absolutely.Over the course of 2017, the price of Bitcoin swung between £920 and$20,000.That is great news if you are a speculator, but it’s not ideal if you want to launch a global payment network for Facebook’s 2.4 billion users.That’s why Libra has been designed as a so-called “stablecoin”.That means the value of Libra will be tied to the value of real-world assets.Essentially, the Libra Association will store a basket of currencies (like dollars, euros and pounds)and low-risk government securities.The value of this basket will determine the value of all the Libra units in circulation.Every time a user trades cash for Libra through an exchange, that cash will be added to the Libra Association’s reserves.

At this stage, there is not much else we know about Libra.We do know that Facebook Calibra will launch a Libra wallet allowing users to exchange Libra through Messenger,WhatsApp or a standalone app.But we don’t know which businesses will accept Libra yet,though it’s probable that both Uber and Ebay will because they are both members of the Libra Association.