Facebook seals deal with payment giants and Uber

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According to a report on 13th June in the Wall Street Journal (WSJ). The report starts by announcing, “Facebook Inc. has signed up more than a dozen companies including Visa Inc., Mastercard Inc., PayPal Holdings Inc. and Uber Technologies Inc. to back a new cryptocurrency it plans to unveil next week and launch next year.”

According to the Journal’s unnamed source, these companies have “each invested around $10 million in a consortium that will govern Facebook’s forthcoming digital token, dubbed Libra.”

The WSJ appeared to confirm that the project “will allegedly be a fiat-pegged stablecoin, pegged to a basket of national fiat currencies to avoid price volatility.”

According to the WSJ, the discussions with investors are still ongoing and the list of consortium members could be extended. The consortium itself is allegedly to known as the Libra Association, the report adds. It also claims that several members have expressed concerns that Facebook’s token could be exploited for money laundering or terror financing purposes.

Significantly, the WSJ article alleges, based on source information, “neither Facebook, nor individual consortium members, will control the cryptocurrency, although some members could operate nodes on the network that underlies the crypto payments network”

Cointelegraph states, “In addition to the aforementioned companies, fintech firm Stripe, travel reservations site Booking.com and e-commerce site MercadoLibre have all signed on to the project, according to several of the sources.” It also adds that all consortium members have been asked to sign up to the project’s white paper, which is supposedly going to be published on 18th June.

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