Facebook has been in the rumor of launching its cryptocurrency for quite some time and now it seems that the launch of it is finally here. According to reports, Facebook has secured itself a backing of nearly a dozen major companies for launching its cryptocurrency by the name Libra. The cryptocurrency is going to be launched next week.
According to reports of the Wall Street Journal, the companies that have backed the currency are some of the top financial organizations such as the Visa and Master card. As for the intent financial companies, PayPal, Stripe, Uber, and Booking.com have also backed the company on their platforms.
Each of these companies is also going to invest a sum of nearly 10 million dollars each for the fund development of this new cryptocurrency with which they will become part of the Libra Association. Libra Association is going to be an independent consortium which is going to govern the cryptocurrency Libra independent of Facebook.
The involvement of companies such as Visa and MasterCard is an unusual one because when compared to these payment alternatives, cryptocurrencies are rather cheap. According to the speculation of media these companies want to be involved in this new Facebook endeavor in order to monitor its payment ambitions along with gaining benefit from the currency’s popularity if it becomes a major hit with nearly 2.4 billion active monthly users on Facebook.
According to tech media, the currency which has been named as “Libra” is going to be unveiled on June 18th with the full public release to occur in 2020. The cryptocurrency is going to be “Stablecoin” which means that it is going to be pegged with a basket of other government-issued currencies. This will be done for limiting the volatility of the other cryptocurrencies such as Bitcoin.
Before the full-fledged launch, Facebook is also going to pass through numerous regulatory hurdles along with addressing the concerns related to money laundering and frauds.