Each company will invest around $10 million in a consortium that will govern the cryptocurrency, said report The cryptocurrency, under Facebook’s ‘Project Libra’, is reportedly aimed at allowing Facebook’s international users.
Facebook Inc. has enlisted quite a dozen companies as well as Visa Inc.,
MasterCard Inc., PayPal
Holdings Inc. and Uber
Technologies Inc. to
back its new cryptocurrency, the Wall Street Journal reported on Thursday.
Each company will invest around $10
million in a consortium that will govern the
cryptocurrency, the WSJ reported,
citing individuals familiar with the matter.
The money will fund the creation of the coin, which will be pegged to a basket
of government-issued currencies, the report said.
Facebook, MasterCard, PayPal, Visa and
Uber didn’t instantly reply to requests for comment.
The cryptocurrency, under Facebook’s “Project Libra”, is
reportedly aimed at allowing Facebook’s international users to
transfer cash across
borders and to make online purchases.
With its cryptocurrency, the social
networking giant is planning to include bonuses for merchants
that adopt it. In fact, staff in the project would even
have the choice to be
paid in the cyber currency, Engadget reported.
Given Facebook’s infamous security management, the blockchain would supposedly be “far more centralized” than
Bitcoins and the company
would tap outside companies to assist run the system.
Facebook has already started hiring for its
cryptocurrency-based payments on its platform that has 2.38 billion users.
The social networking giant has also set up a group within the corporate, headed by messenger chief David Marcus, to explore Blockchain
technology and its potential use for the platform.
Earlier in June, the corporate ignited a discussion regarding its crypto Stablecoin
initiative with the U.S.A. commodity and Futures trading Commission (CFTC).