Virtual Facebook currency faces real-world resistance

London: If Facebook´s new cryptocurrency should resonate anywhere it should be India, where the social media giant has more than 300 million followers.

Many Indians are shut out of banking and face punitive fees for simple transactions, like transferring money to their loved ones.

But in India as elsewhere, the US company´s ambitions to remake global finance through its "Libra" currency will have to overcome regulatory mistrust, plus the existence of popular homegrown rivals in the market for digital payments.

"If regulations were not a hurdle in India, Libra would instantaneously have a massive reach because of Facebook," Anirudh Rastogi, the founder of a technology-focused law firm in New Delhi, told AFP.

When it launches next year, Libra will be backed by a basket of real-world currencies and a consortium of companies. To mint and store new coins, access to its underlying "blockchain" technology will be more restrictive than for the free-for-all of bitcoin.

Companies rooted in traditional finance such as Visa and MasterCard have joined from the start, betting that Facebook´s clout gives the project enough potential to overcome any downside to their existing business models.

"I will definitely use Libra as the idea seems good and they have a big partnership list thereby offering credibility," 23-year-old consultant Prasad Khake said in Mumbai.

"The platform will work depending on how accessible and easy it is for billions of Indian users," he said.