Facebook has been taking the spotlight every time they are in the news, this time the light seems to be a lot more bright for the fact that, the cryptocurrency by the social media giant will receive huge funds from Uber, PayPal, Mastercard and Visa.
All of the aforementioned brands have joined hands and signed up a consortium that will govern the digital currency. A few other brands that have come on board is an Argentina based e-commerce site MercadoLibre, a fintech company Stripe and also a hotel-reservation website Booking.com.
Facebook has charged a sum of $10 million from all the project backers to manage their node, which is a framework which will manage Libra.
By the companies on board, Facebook is eyeing at $1 billion worth of funding by the said companies. With the stablecoin in place it will let users of WhatsApp transfer money. Stablecoins are digital currencies that are pegged against the US dollar and also many other fiat currencies. This is done to reduce the volatility factor in the cryptocurrencies.
Facebook had earlier hired David Marcus the former President at PayPal to head the cryptocurrency arm of the social media giant. The main concept behind Facebook’s idea of digital currency is to make its usage easy for day to day purchases as it would be a lot more stable than Bitcoin or any other currency.
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