Social media giant Facebook’s stablecoin which has not even been officially launched yet, is attracting not only a lot of buzz in the crypto community, but also interest from commercial partners in the form of three major companies PayPal, MasterCard, and Visa.
These three companies are said to be major backers of Facebook’s cryptocurrency along with a number of other companies including Uber. According to anonymous sources, each of the companies will invest $10 million into a foundation that will govern the coin. The funds raised will be used to create the backing of the coin which will be pegged to a pool of fiat currencies.
According to a report by the Wall Street journal, neither the governing body- The Libra association- nor Facebook will directly govern the coin. Anonymous sources also told the journal that some members are not clear on how the coin will work or their role in the project.
Some members are also using the coin their reach all over the world with the journal reporting new players such as financial technology firm Stripe Inc., travel reservation firm booking.com, E-commerce outfit MercadoLibre Inc. jumping onto the Facebook stablecoin project. More detailed reports on the much awaited Facebook token could be released soon, with Facebook expected to release the Coin’s Whitepaper any day from now.
Facebook has also ramped up its crypto hires with 28 new job openings being revealed. The social media giant has been quite aggressive with its crypto plans and is reportedly targeting to launch its Global coin early next year according to a BBC report. The company plans to carry out tests later this year and launching in some countries after the tests are finalized.
Facebook also registered an LLC in Geneva focused on Blockchain developments under the name Libra Networks back in May. A LendEDU study reported that a Facebook crypto could pull users to the space specifically because of the sites market feature that enables buyers to buy and sell items locally.
Developments are also in full gear on the regulations side with the commodity futures trading commission telling the Financial Times that early talks were being held between the body and the social media giant about its stablecoin. Facebook is yet to file an application to the regulatory body though according to commissioner Christopher Giancarlo. The body is still trying to discern whether Facebook’s soon to be released token falls under its jurisdiction.
The cryptocurrency community is right to be excited about this news because it shows more major corporations not shying away from the crypto space. The amount of money going into crypto projects is astronomical and firms such as Facebook itself which was on the fence on matters cryptocurrency demonstrate that crypto may just be set for a bright future.
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