Visa, Uber and PayPal Will Back Facebook's Crypto Asset

Andrew Cummings
June 16, 2019

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.

Social media giant Facebook has signed over a dozen companies, including some of the world's largest corporations like Visa Inc, Mastercard Inc, PayPal Holdings Inc. and Uber Technologies Inc, to back its cryptocurrency project, Libra, reported Wall Street Journal.

The cryptocurrency is reported to be called Libra and will be revealed on June 18, with plans to release the coin fully in 2020. The secretive project, in the works for more than a year, revolves around a digital coin that its users could send to each other and use to make purchases both on Facebook and across the internet. Further, Libra will be classified as a stablecoin - a kind of cryptocurrency that is part of a list of other government-issued currencies, much like a fiat.

According to The Block, Facebook has shared an introductory blog post with various news outlets, which describes Libra as a "simple global currency and financial infrastructure" that's meant to reach billions of people.

Mark Zuckerberg is coming for cryptocurrency. Facebook is betting it can change that with a crypto-based payments system built around its giant social network and its billions of users.

However, Facebook users are also older than average and less familiar with cryptocurrencies.

It's been reported that Facebook's crypto is a stablecoin, meaning it is pegged to the value of an underlying asset, usually government-issued currencies such as the USA dollar.

Facebook's blockchain effort is being headed up by David Marcus, who previously led the Facebook Messenger business.

Facebook won't directly control the coin, nor will the individual members of the consortium known as the Libra Association.

Other reports by iNewsToday