Facebook’s cryptocurrency backed by dozen of big firms ahead of debut.
Social media giant facebook secured Support of some of the leading payment, retail and technology firms for its upcoming cryptocurrency scheduled to be announced next week, As stated by The Wall Street Journal Facebook’s cryptocurrency will be controlled by a consortium of companies that will form the Libra Association, including Visa, Mastercard, and PayPal Uber, Stripe, and Booking.com.
According to reports, each will spend around $10 million to finance currency growth and become part of the Libra Association, an autonomous consortium that will separately regulate the digital coin. As quoted by the Block,stakeholders such as venture capital companies Andreessen Horowitz and Union Square Ventures, cryptocurrency exchange Coinbase, and non-profit organizations including Mercy Corps will also be included in the consortium created to manage the project.
⠀According to TechCrunch, the cryptocurrency, allegedly called Libra, will be revealed on June 18, with a launch scheduled for 2020. Libra which is expected to operate as a ‘ stablecoin, ‘ meaning that it is attached to a basket of government-issued currencies to restrict the volatility commonly associated with digital currencies such as Bitcoin.
In the Libra project, creating stability is a main issue as Facebook hopes to attract consumers in developing nations with an alternative to more volatile local currencies. It was announced earlier today that Facebook had recruited of Standard Chartered Bank’s Ed Bowles who happens to be the bank’s Head of Public Affairs in anticipation of Europe’s increased regulatory scrutiny over its plans to launch its 2,4 billion customers of crypto assets and other financial services. September, Bowles will join the business and is set to serve as the public policy director based in London for the business.