For more than a year we have known that Facebook has among its plans the launch of its own crypto currency. A payment system based on a ‘stablecoin’, that is to say, linked to a platform that guarantees its stability and is resistant to the usual volatility that we have seen in Bitcoin.
Now, through the Wall Street Journal, we discover more details about this Facebook crypto currency, from its date of arrival to the type of companies that will support it. This is what we know about Libra, Facebook’s crypto currency that aspires to become one of the largest payment platforms on the internet.
Libra Association, a consortium
Facebook has teamed up with companies such as Visa, Mastercard, Paypal and Uber to launch its new crypto currency. A coin that would be presented next week and will be available in 2020.
For the creation of this platform Facebook has allied with financial companies, investors and telecommunications companies. There is also talk of companies such as Stripe or MercadoLibre. A consortium of companies where each will invest about 10 million dollars for the creation and management of this digital currency, called “Libra” as reported by the WSJ.
The investments will be used for the foundation of the currency and will be linked to funds with other currencies to avoid the volatility maintained by many current crypto currencies. For the moment, Facebook would have already contacted several banks and Internet giants to capture about 1,000 million dollars.
During this time, Facebook has been making small investments and related purchases such as Chainspace, its first blockchain startup. Taking advantage among other factors the fall in the value of many crypto coins that at the beginning of the year was very far from its maximum value.
A shared responsibility
The name of the companies that will finally form the Libra Association may change, but it is expected to have the presence of the big names of the financial market. A decade has passed since the creation of Bitcoin and Facebook wants to cover millions of users with its payment platform.
But Facebook will not directly control this currency, nor will the members of the association. These large companies will act as “nodes” of the system and will be able to verify transactions, as well as keep a record of payments. In fact, according to the WSJ, “Libra” is expected to act as a basis for other related payment systems.
The development of the crypto currency is being done by Facebook and led by David Marcus, former Messenger director and former Paypal president, but Mark Zuckerberg’s company will be looking for other companies from the future “Libra Association” to sign the currency presentation document that would arrive next week.
It will be necessary to be attentive to all the details of this important project of Facebook.