According to The Block, Facebook and its multiple partners will launch its Libra Association on 18th June.
The Libra Association, which is based in Geneva, will oversee Libra, “a simple global currency and financial infrastructure” meant to reach billions of people. The Libra coin will be backed by Libra Reserve, a “reserve of real assets,” that will provide the cryptocurrency with “stability, low inflation, global acceptance and fungibility,” the Association says. Furthermore, the Libra Blockchain will be open-sourced under an Apache 2.0 licence and a testnet will be operational on the day of the announcement. That should be this week.
The social media giant allegedly hopes that the system will help people without access to the financial system, which it estimates at 1.7 billion adults globally. The Block says that in the post, Facebook criticises other existing blockchains, claiming that they have yet to meet mainstream adoption targets. Therefore, they are poor solutions in terms of value and medium of exchange. Facebook believes its collaborative, compliant and regulated approach will help it to overcome the obstacles faced by other cryptocurrencies.
Facebook also maintains that while some crypto projects have aimed to “disrupt the existing system and bypass regulations” it believes in collaborating with the financial sector, including regulators and experts across a variety of industries and that this is the only way to ensure, a trusted, sustainable framework.
Recently, news broke that Facebook has allegedly sealed backing from over a dozen firms that include Visa, Mastercard, PayPal and Uber for its soon-to-be-unveiled cryptocurrency project. Each firm reportedly contributed $10 million to the project.