According to reports by the Wall Street Journal, Facebook Inc., has brought on board over a dozen major backers for its highly secretive cryptocurrency project. Apparently, biggies like Visa, MasterCard, PayPal and Uber have all joined the consortium of investors providing funding to the project.
Each of these companies, numbering more than 12, will invest roughly 10 million dollars towards a consortium put in place to oversee the crypto project.
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Reports that have already emerged about the crypto project suggest that this coin will be similar to a stablecoin, and will be pegged to a whole set of fiat currencies issued by government.
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.
In fact, notable crypto investors like Tim Draper have also expressed interest about investing in the project. Now, the money that is raised from the social media giant’s corporate backers, will be used to develop the new crypto coin.
Although the corporate big shots associated with this deal have not yet talked to the press about their expectations from this deal and the corresponding project, they are clearly massively excited by this project, going by the amounts they are pouring into it. Facebook itself is also yet to put out comments for the press and the general public to note.
The cryptocurrency in question, being organized under a project titled “Project Libra”, is, as per reports, meant to allow users of Facebook across the world make speedy and convenient cross border payments and online purchases as well.
The cryptocurrency, under Facebook’s “Project Libra”, is reportedly aimed at allowing Facebook’s global users to transfer money across borders and to make online purchases. This project has been at the centre of considerable media attention since reports surfaced about its existence and many experts have questioned whether it will tenable in the long run. Considering Facebook’s tenuous ties with the concept of decentralization, we wonder to what extent the new Facebook Coin will really represent the ethos of crypto.