Money talks: Facebook cryptocurrency Libra to be powered by AI
Facebook has bought an artificial intelligence company as part of its bold plans to launch a cryptocurrency. The social media giant acquired Servicefriend, an Israeli firm that builds Artificial Intelligence (AI)-driven bots intended to mimic the intelligence, ability to understand, and empathy of a human.
Libra is a blockchain digital currency planned to be launched next year. Facebook plans to let its nearly two billion users to pay and send digital cash using Libra, combined with a digital wallet called Calibra. The social network’s aim appears to be to use the AI to power customer service for the Calibra digital wallet, where cryptocurrencies are stored by owners.
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A Facebook spokesman told TechCrunch: “We acquire smaller tech companies from time to time.
“We don’t always discuss our plans.”
Cryptocurrency uses encryption to secure transactions and control the creation of new units. It uses cryptography, a form of coding originating from the Second World War, to process transactions securely.
Its major appeal is it is independence from established financial systems and it is usually traded through specialist online “exchanges”.
Many economic powerhouses are wary of a Facebook cryptocurrency.
French Finance Minister Bruno Le Maire warns it will upend the "monetary sovereignty" of European nations and claims governments will be left in the dark when deciding financial policy if two billion people turning to Libra for online transactions.
His fears were echoed by German counterpart, Olaf Scholz, and the head of Singapore’s central bank has warned that Facebook's Libra digital currency presents global financial risks.
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