Monday, June 24

Facebook New cryptocurrency Libra backed by Visa, Mastercard, PayPal and Uber

California, 18th June 2019:¬†Facebook will unveil its cryptocurrency “Libra” in a bid to bring cryptocurrency payments into the mainstream with the backing of big tech companies.

The world’s biggest social network is expected to outline details of a virtual currency launching next year that it hopes will avoid the rollercoaster volatility of “blockchain” technologies such as bitcoin.

Facebook is setting up a consortium called “Libra” which backed by more than a dozen companies including Visa, Mastercard, PayPal, and Uber.

The companies along with venture capitalists and telecommunications firms will reportedly invest around $10 million each into the consortium.

Facebook has been trying to ward off hostile regulatory scrutiny after a series of privacy abuses and the spread of fake news.

The consortium will be managed externally and seek to build trust among consumers by pegging the virtual coin to a basket of currencies including the dollar and euro, the Journal said.

As per the report, Facebook also communicating with US Treasury and the Bank of England for co-operation.

Regulators have been reticent about cryptocurrencies, not only due to potential abuse by criminals but the wild swings in their value harming consumers.

With more than two billion users across its platforms, which include WhatsApp and Instagram, Facebook could have the clout to bring cryptocurrency out of the fringes and emulate the likes of WeChat in China, where the US site is banned.

WeChat allows its users to chat, shop and play games without leaving its platform, generating more revenue by offering a one-stop portal.

Buffeted by the privacy storms, chief executive Mark Zuckerberg has promised a new direction for Facebook built around smaller groups, private messaging and payments.