Facebook cryptocurrency will debut next week with the support of Visa, Mastercard, Uber and others: WSJ



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Facebook has secured the support of more than a dozen companies for the announcement of its next Libra cryptocurrency that will be announced next week. The Wall Street Journal reports. These companies include large financial organizations such as Visa and Mastercard, as well as Internet favorites such as PayPal, Uber, Stripe and Booking.com. Each will invest approximately $ 10 million to fund the development of the currency and will be part of the Libra Association, an independent consortium that will manage the digital component independently of Facebook.

The participation of large financial companies such as Visa and Mastercard is interesting because crypto-currencies are generally considered a cheaper alternative to these payment networks. the WSJ speculates that these companies want to get involved in order to monitor Facebook's payment ambitions and take advantage of the currency's popularity if it takes off with 2.4 billion active Facebook users each month.

For Facebook, the creation of an independent body should cover users and regulators, who are increasingly suspicious of the power of Facebook and its cavalier attitude towards the resulting responsibilities.

The cryptocurrency, which would be called Libra, will be unveiled on June 18, according to TechCrunch, with a full exit planned for 2020. It should function as a "stablecoin", which means that it will be pegged to a basket of currencies issued by governments to limit the volatility typically associated with crypto-currencies such as Bitcoin. Stability is a major concern as Facebook hopes to attract users from developing countries with an alternative to more volatile local currencies.

In addition to allowing users to send money via Facebook messaging products such as WhatsApp and Messenger, Facebook hopes that its partnerships with e-commerce companies will allow users to spend money online. The company also plans to develop ATM-type physical terminals to allow people to convert their money into Libra.

Before being able to launch the currency, Facebook will have to overcome many regulatory hurdles and will also have to address concerns about fraud and money laundering (a concern within the consortium). Facebook reportedly met with Governor of the Bank of England, Mark Carney, to discuss the opportunities and risks of the currency, as well as the US Treasury and money transfer companies like Western Union. Managing the regulatory aspects of the currency well will be crucial if it is to succeed in key markets such as India, which has been hostile to cryptocurrency in recent years.

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