Facebook’s Libra coin could become a big pain in the wallet for consumers

Facebook’s FB, -0.29%foray into cryptocurrency could mean trouble for consumers’ finances.

The social media giant on Tuesday disclosed details of how its cryptocurrency, called Libra, will work. Libra will be a stablecoin, meaning it will be backed by hard assets, unlike other cryptocurrencies like bitcoin BTC, -1.87% . Consumers who use Facebook’s Messenger service, WhatsApp or a stand-alone app will be able to access Libra through a digital wallet managed by new Facebook subsidiary Calibra.

Facebook won’t run the cryptocurrency directly. Calibra will be a founding member of the nonprofit Libra Association, which will manage the coin, along with eBay EBAY, +1.69% Visa V, -0.17% Mastercard MA, -0.15% PayPal Holdings PYPL, -1.01% Lyft LYFT, +1.26% Uber UBER, +0.18% and Kiva.

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