Last month, reports surfaced that Facebook was planning to launch its own cryptocurrency. The project has now made a lot of progress, as the social media networking giant has found market leaders backing its own version of cryptocurrency dubbed ‘Libra’.
Libra is scheduled to be launched in 2020 is being backed by Mastercard, Visa, Paypal, and Uber. The four companies have signed up to become a part of the consortium being called ‘The Libra Association’, which will govern the virtual currency. With Argentina-based e-commerce site MercadoLibre, Fintech company Stripe and hotel-reservation website Booking.com having already signed up for the project, Facebook is reportedly planning to go international.
Each company that is a member of The Libra Association is expected to invest $10 Million in a fund that is going to be used for the Libra project. Facebook also plans to raise $1 Billion to start a crypto-based payment system. In order to avoid volatility, the digital coin will be linked to a number of government-issued currencies. Neither Facebook nor any member of the consortium will have direct control over the Libra. Instead, they will just be acting as ‘nodes’ to verify transactions, maintain records and ensure security.
The white paper for the project is expected to be released next week and will be signed by all partner companies per a Wall Street Journal report.