Facebook to Unveil ‘Libra Association’ and Launch Testnet Next Week

Andrew Cummings
June 18, 2019

Each of the new backers will invest roughly $10 million in the project as part of a governing consortium for the cryptocurrency.

Shrem believes Facebook's project is simply a way to distract people from real cryptocurrencies with a "better, easier, crypto". The consumer trust in these brands might rub off on the social media giant, while it can also point to the fact its control and influence over the digital currency will be diluted through the presence of an oversight committee.

Even though this clear connection with fiat might jeopardize the essence of decentralization imperative for a cryptocurrency, the Facebook Coin has already generated a great deal of hype and interest, and garnered a lot of investors' attention.

The Journal previously reported online merchants were looking to raise around $1 billion for an effort aimed at a digital coin that users could send each other - and use to make purchases both on Facebook and across the Internet.

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 global.

In the lead up to Facebook's official cryptocurrency reveal, the social media titan has signed up big backers for its "Project Libra" as well hiring senior United Kingdom bank lobbyist, Ed Bowels.

The report said the cryptocurrency will debut with support from Mastercard Inc., Visa Inc., PayPal Holdings Inc. and Uber Technologies Inc. along with support for about a dozen other companies.

The Libra Blockchain will be open-sourced under an Apache 2.0 License as of the day of the announcement, expected to occur on Tuesday, June 18, according to the blog post by the social-media giant and as originally reported by TechCrunch. It's expected to act as a "stablecoin" meaning its value will be attached to a number of government-issued currencies in order to limit the volatility of the value of the coin; an issue which Bitcoin has faced for some time.

Many of Faceook's crypto-related decisions were noticed this month, for instance that Facebook's employees will take their salary in the form of the new digital currency.

Naturally, the project has caught the attention of regulators around the world due to the sheer scale of Facebook's user demographics.

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