The new cryptocurrency offering will be called Libra, and is set to launch next year. An independent subsidiary, Calibra, will also launch to help facilitate the sending, spending and saving of Libra, according to a post from Mark Zuckerberg, CEO of Facebook.

"Libra's mission is to create a simple global financial infrastructure that empowers billions of people around the world. It's powered by blockchain technology and the plan is to launch it in 2020," reads the message from Zuckerberg. "Being able to use mobile money can have an important positive impact on people's lives because you don't have to always carry cash, which can be insecure, or pay extra fees for transfers. This is especially important for people who don't have access to traditional banks or financial services." Zuckerberg said there are close to one billion people who do not use a bank account, but do own a mobile phone.

Facebook, along with 27 organizations from around the globe have partnered to start the Libra Association, which will act as a non-profit, he said, adding his goal is to partner with 100 cofounding members by next year’s launch. Other companies planning to build services using Libra include:

• Mastercard
• PayPal
• PayU
• Stripe
• Visa
• Booking
• eBay
• Farfetch
• Lyft
• Spotify
• Uber
• Kiva
• Mercy Corps
• Women's World Banking
• Anchorage
• Coinbase
• Xapo
• Bison Trails

"All of this is built on blockchain technology. It's decentralized--meaning it's run by many different organizations instead of just one, making the system fairer overall," said Zuckerberg in his announcement. "It's available to anyone with an internet connection and has low fees and costs. And it's secured by cryptography which helps keep your money safe." Zuckerberg assured users that safety and privacy will be part of each step of the process and said Calibra will have a risk management team dedicated to thwarting bad actors. He also added lost coins will be refunded and third-party wallets will be offered to give users greater autonomy.

Pushback And Concerns Accompany Facebook’s News

Rep. Maxine Waters, chairwoman of the House Financial Services Committee, cited Facebook’s past mishandling of user data as reason to pause.

'Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data. It has also exposed Americans to malicious and fake accounts from bad actors, including Russian intelligence and transnational traffickers," Waters said in a statement. "Facebook has also been fined large sums and remains under a Federal Trade Commission consent order for deceiving consumers and failing to keep consumer data private, and has also been sued by the government for violating fair housing laws on its advertising platform."

She criticized what she called the company’s "unchecked expansion" and also pointed out overarching concerns with the lack of regulatory framework needed to protect users and investors. "Regulators should see this as a wake-up call to get serious about the privacy and national security concerns, cybersecurity risks, and trading risks that are posed by cryptocurrencies," she added.

Waters called for a moratorium on the project until Congress and regulators can examine the matter as well as called for testimony from company executives to address any concerns.

From Twitter:
CZ Binance‏Verified account @cz_binance

"Facebook Libra coin don't need KYC. They have so much more data on the 2 billion people. Not just name, id, address, phone number. They know your family, friends, real-time/historic location, what you like... They know you more than yourself. And now your wallet too. Best AML!" 

Noted Zuckerberg: The information collected on Calibra will be segregated from information shared on Facebook. "We've been working with policymakers and experts in areas like financial inclusion, economics, security, privacy and blockchain, and we'll continue listening to their feedback as we figure out the best way to move forward," said Zuckerberg, in his announcement.

Cryptocurrency Market Rallies After Announcement

Markets Insider is reporting Bitcoin hit a recent-high of $9,477 immediately after Facebook made the announcement. Further, Ethereum and Ripple also achieved "multi-month highs during that same period." One expert cited in the report said the news will shed light onto the industry, which ultimately helps drive the value of Bitcoin.