Facebook (NASDAQ: FB) is planning to unveil its new cryptocurrency, GlobalCoin next week and is said to have signed up more than a dozen clients to back its crypto-based payment system. The companies who have agreed to back Facebook include Paypal Holdings Inc., Uber Technologies Inc., Visa Inc., MasterCard Inc., MercadoLibre, Booking.com, Stripe, and a few others.
The consortium of companies will then invest $10 million each, which will be used to fund the development of the currency. According to sources, the cryptocurrency will be pegged against a basket of fiat currencies to prevent it from swinging wildly, something which the other digital currencies failed to do.
Facebook’s crypto-based payment system has been in the works for more than a year now, and the digital coin which the company is expected to launch can be used to make purchases on Facebook’s platform and via the internet. While most of the cryptocurrencies in circulation are hardly used as a payment gateway by users, Facebook is looking to change that and is banking on its billions of social network customers to take it forward.
This is a good question about the performance of this social media giant's cryptocurrency.
Below are the latest updates.
In April 2020, Facebook Inc. and partners revealed the Libra cryptocurrency project would support several digital coin versions. Each digital coin would have backing from individual fiat currencies, such UK sterling.
In March 2020, checkout.com, a Briton payments start-up, become a member of the Libra Association. This association represents a digital currency project brought together by Facebook Inc. in 2019. Checkout.com becomes the first online payment processor to join this alliance, after US giants, such as Stripe, Mastercard, and Visa pulled out. This pull out arose from regulatory concerns that came to a head in October 2019.
During early 2020, several firms have expressed their willingness to back the Libra Crypto. They include cryptocurrency brokerage Tagomi, Heifer International, a non-profit organization, and e-commerce giant Shopify.
On 15 May 2020, one of the world's largest institutional investors, Singapore's Temasek, threw their support behind Facebook Inc led Libra. This development could help in breathing new life into this project amid heavy fire from regulators.
An important feature about Temasek's endorsement rests on the fact that it is a state-backed investment firm. This critical endorsement further comes after the Libra association lost several high-profile members due to concerns it would threaten security on global financial systems. These fears also include concern regarding money laundering and privacy.
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