Facebook to Debut Cryptocurrency Next Week, Backed by Visa, Mastercard, Uber

Facebook's cryptocurrency-based payments system gets big backers- WSJ

Facebook's cryptocurrency-based payments system gets big backers- WSJ

Facebook, Mastercard, Paypal, Visa and Uber did not immediately respond to requests for comment.

The Wall Street Journal reports that social media giant Facebook plans to reveal its new Libra digital cryptocurrency next week with backing from over a dozen other companies.

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 worldwide.

It has been a decade since bitcoin was born, yet consumers hardly use it or the hundreds of other cryptocurrencies to pay for things. At present, there are more than 2,000 digital coins in practice.

The materials cited by the Block indicate that the consortium formed to govern the project will also include investors such as venture capital firms Andreessen Horowitz and Union Square Ventures, cryptocurrency exchange Coinbase, and non-profit organizations including Mercy Corps. If all goes according to plan, Facebook will purportedly secure $1 billion from the 100 participants as it is reportedly charging each member $10 million to manage their own node.

The money will fund the creation of the coin, which will be pegged to a basket of government-issued currencies, the report said.

As per the report, neither Facebook nor any other member of the consortium is going to have direct control over the cryptocurrency.

That means when Facebook reportedly unleashes its Libra white paper next week, it will do so with the blessing of several companies that could have been hurt by this had they not invested in it themselves.

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