Facebook to launch cryptocurrency next week

Lloyd Doyle
June 16, 2019

GlobalCoin, pegged to multiple currencies, is expected to debut early next year. As reported by the WSJ, members could act as "nodes" to verify and record transactions.

Per the report, Facebook and dozens of its partners will unveil the Libra Association - which will be based out of Geneva - as the entity that will oversee the company's Libra cryptocurrency project. Not only that, the social network says that its digital dollar will be back by several major financial institutes like Visa and Mastercard, along with companies such as PayPal, Uber, and Booking.com, to name a few.

The cryptocurrency will have its own Libra Blockchain, a "secure, stable, and reliable blockchain" that'll be backed by the Libra Reserve, a reserve that's going to includes real assets backing the cryptocurrency to provide it with stability, low inflation, fungibility, and global acceptance. Facebook users will be able to send the Libra cryptocurrency over WhatsApp and messenger.

Uber, Stripe, and the others are reportedly investing $10 million each to support a separate organization that will help run the new digital currency, which has been codenamed Project Libra.

Libra was created to work as a stablecoin that is tied to the U.S. dollar, which will make it invulnerable to the volatility of other coins, such as Bitcoin, Ether, Ripple and others.

Furthermore, the report holds that all the money will be used to fund the entire process of creating the new cryptocurrency, which will, in turn, be attached to a basket of government-issued currencies.

Facebook's endeavor into the blockchain sector is more of an effort to reduce transactional costs for its e-commerce segment internally and across the internet.

In a move to set aside a good amount of cash to cushion its crypto coin, Facebook has seak partnership with the most significant market players in terms of cash remittance including Visa, MasterCard, and PayPal among other players in different markets.

Other reports by Iphone Fresh

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