Reuters has reported that on 2nd May, Facebook registered a new company, Libra Networks, in Geneva.
Facebook Global Holdings is a stockholder in the new company and it will, according to Reuters, “provide financial and technology services and develop related hardware and software, plans submitted on the Swiss register reveal.”
As Coindesk says, Facebook’s roll out of its cryptocurrency has been slow paced and it only hired compliance managers in the last couple of weeks. The media giant has also run into some stormy waters with US Congress, which sent an open letter to the company seeking clarification on the currency’s purpose and implications. It said: “The Wall Street Journal recently reported that Facebook is recruiting dozens of financial firms and online merchants to help launch a cryptocurrency-based payments system using its social network. Last year, Facebook asked U.S. banks to share detailed financial information about consumers. In addition, privacy experts have raised questions about Facebook’s extensive data collection practices and whether any of the data collected by Facebook is being used for purposes that do or should subject Facebook to the Fair Credit Reporting Act.”
Facebook has made no comment about the new company registered in Switzerland, but we do know that it is probably planning to try and raise around one billion dollars for its cryptocurrency project. While Facebook is far from short of cash, involving outside investors in the stablecoin project could help Facebook present the cryptocurrency project as “more decentralized and less controlled” by itself. Earlier this year, Barclays analyst Ross Sandler estimated that Facebook’s cryptocurrency project could yield anywhere from $3 billion to $19 billion in additional revenue by 2021.
Facebook sets up its blockchain team in May 2018, aiming to explore the emerging technology and has been hiring staff in various related roles since then.