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Facebook cryptocurrency backed by Visa, MasterCard, Uber, and PayPal

Facebook has been working on its cryptocurrency for some time now. Unlike the regular cryptocurrencies, the company’s crypto coin will be a stablecoin- a cryptocurrency pegged to real assets like cash or precious materials which will cushion it from fluctuation in prices.

With Facebook, its cryptocurrency will not only be tied to the US dollar but also a bunch of other international currencies as well. The crypto coin dubbed Libra or whatever Facebook may call it will be the first stablecoin in the market although analysts still warn that the coin will be vulnerable to change in prices.

In a move to set aside a good amount of cash to cushion its crypto coin, Facebook has seak partnership with the most significant market players in terms of cash remittance including Visa, MasterCard, and PayPal among other players in different markets. The cryptocurrency will be managed by a consortium of firms under Libra Association which Facebook will officially announce on Tuesday.

However, TheBlock got its hands on the marketing material and unveiled a whole list of companies in the Libra Association. Here’s the full list of firms backing Libra.

Libra Association partners
Image/ TheBlock

Each of the enlisted companies will contribute $10 million to the consortium that will govern the cryptocurrency WSJ reported. Reports from an familiar source with the matter stated that Facebook had ambitions to work with the Wall Street; however, there was a lack of interest from its most prominent players including JP Morgan and Goldman Sachs.

Facebook will launch its Cryptocurrency in Q1 2020, which will be under Libra Networks, a financial company registered in New Zealand by Facebook in May this year.

Mark Zuckerberg aims at providing an affordable and more comfortable way to get involved in payment systems for people without access to the traditional financial payment systems like banks.

The risk of cryptocurrency as a payment system has already been questionable since the Bitcoin bloom in 2013,  but let’s hope the case is different with Facebook’s cryptocurrency. The company has been working closely with relevant financial regulatory agencies to analyze the risks that could be involved.

Image| Reteurs

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Alvin Wanjala

Alvin Wanjala has been writing about technology for over 2 years. He writes about different topics in the consumer tech space. He loves streaming music, programming, and gaming during downtimes.

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