Facebook Gathers Companies to Back Libra coin Launch

Facebook, Inc. (FB) has big plans to unveil its new platform cryptocurrency next week, with a launch slated for next year, according to a detailed report by the Wall Street Journal. Users of the social media platform will be able to send the digital coin, called Libra, to one another, and they will also be able to use it to make purchases both through Facebook and across the internet more broadly. In order to build support for the new coin project from its earliest stages, Facebook has enlisted the financial backing of more than a dozen companies across the financial, e-commerce, tech and telecommunications industries.



Visa, Mastercard, PayPal and Others Support Libra

Among the various companies signed up to invest around $10 million each in Libra are credit card giants Visa, Inc. (V) and Mastercard, Inc. (MA), digital payments company PayPal Holdings, Inc. (PYPL) and ridesharing powerhouse Uber Technologies, Inc. (UBER). The money raised by members of the consortium will help to fund the launch of the coin. According to the report, Facebook has sought to raise as much as $1 billion in support of the new cryptocurrency project.



What It Means

Since the beginning of the cryptocurrency craze about two years ago, enthusiasts have anticipated the entry of major social media companies like Facebook into the digital coin space. Facebook has reportedly been developing Libra for more than a year, and few details about the project have been available to the public. One thing that is known is that Libra will be pegged to a basket of government-issued currencies in an effort to preemptively counter the extreme volatility which has plagued other digital coins.




What the Future Holds


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