Facebook Soon-To-Arrive Crypto Supposedly Backed by Paypal, Visa, Mastercard, and Others

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Facebook Soon-To-Arrive Crypto Supposedly Backed by Paypal, Visa, Mastercard, and Others
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Facebook continues to get closer and closer to the launch of its coin, so it is of small surprise that the company is making all kinds of preparations already. The social media giant’s soon-to-arrive coin itself started attracting attention, which includes even some of the major players in the world of finances.

Visa and Mastercard are reportedly already set to be the coin’s backers, with PayPal joining in as well. Of course, there are numerous other firms that have decided to add their support as well, one of them being Uber. The firms have agreed to invest approximately $10 million each, providing the funds into a foundation that is set to govern the coin. The money will also be used to back Facebook’s stablecoin, which is set to be pegged to multiple traditional currencies.

The coin won’t be controlled by Facebook, nor by the Libra Association, which will serve as the governing body. However, there are also quite a few unanswered questions, and it appears that even some of the project’s members do not entirely understand what their role will be, or how exactly is the coin going to work.

On the other hand, some members will use the coin to extend their reach throughout the world. This is likely what has attracted the likes of FinTech firm, Stripe Inc, as well as e-commerce site MercadoLibre, Inc., as well as travel-reservation site Booking.com.

At the time when trading cryptocurrencies is once again surging in popularity, a lot of eyes are turning towards Facebook and its new coin. Earlier this month, information about Facebook planning to release its white paper leaked as well, which would likely provide further details. Also, the company is hard at work, hiring blockchain experts. The number of opened positions within the company reached 28, meaning that the demand for skilled developers is already skyrocketing.

Facebook’s GlobalCoin to arrive in less than a year

Interestingly enough, Facebook — which once banned all crypto-related ads on its platform — is now moving quite rapidly towards the launch of its own coin. The alleged ‘GlobalCoin’ is reportedly expected to see launch by Q1 2020. Before that, Facebook plans to start conducting tests in a number of countries. The true purpose of the coin remains unclear and the company itself is not confirming anything at this time. However, many speculate that it is likely to be used in messaging apps, such as Facebook Messanger and WhatsApp.

Further, the company registered a new LLC in Geneva back in early May, under the name ‘Libra Networks,’ which is why many speculate that the subsidiary will have some connection to the new coin. Also, PayPal’s involvement might mean that the payment platform might be getting more comfortable around cryptocurrencies. After all, it entered a partnership with Coinbase which will allow users to withdraw funds to PayPal, and potentially even buy Bitcoin with PayPal.

But, when it comes to Facebook’s cryptocurrency, PayPal is likely to only remain a backer. Even so, the coin is expected to be extremely successful, at least when it comes to attracting new users to the crypto space. While cryptos are getting all the exposure they could want, more is always better. Also, when the world sees that such a massive platform is willing to work with crypto, many might see it as an encouragement to join the space as well, be they businesses, institutional investors, or individuals.

Finally, there is the matter of regulations, and there were also reports of Facebook already being in early talks with the CFTC regarding the coin. While a lot of details is currently still missing, one thing is certain — Facebook’s cryptocurrency is definitely coming.

About Ali Raza

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A journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.