Social media giant Facebook's Cryptocurrency, which is not yet underway, appears to have attracted three major payment companies as backers, according to a report by The Wall Street Journal.
Visa, Mastercard and PayPal are set to be the backers of Facebook's cryptocurrency along with a number of other companies, including Uber. Each will invest about $ 10 million in a foundation that will control the coin, Journal quoted anonymous sources as saying. The money will be used to create backing for the coin, which will be attached to a basket of fiat currencies.
Neither governing body, called the Libra Association, or Facebook, will directly control the coin, according to Journal. Sources also told the journal that some members do not fully understand how the coin will work or their role in the project.
Some members also use the coins to expand their reach globally, with Journal reporting Financial Technology firm Stripe Inc., travel-booking site Booking.com and Argentina-based e-commerce site MercadoLibre Inc. also sign .
The world of cryptocurrency can soon learn more about the digital asset. The information reported earlier this month that Facebook would release the white paper for its coin, describing its specific details later this month.
Due to its white paper, Facebook posted additional blockchain jobs this week as well, with the total number of openings reaching 28.
Facebook has rapidly moved forward with the crypto plans and hopes to launch its "GlobalCoin" by Q1[ads1] by 2020, according to a BBC report last month. The tests are slated for later this year before launch in some countries, according to the report. Some wonder the token can be used for payments in messaging apps.
Facebook also registered an LLC in Geneva focused on blockchain development under the name "Libra Networks" in early May.
As an interest in the coin rose, a study from LendEDU also reported a crypto from the social media giant could lure new users to the space, especially because of the marketplace feature, which Facebook users can buy and sell goods locally.
On the regulatory front, the Commodity Futures Trading Commission told the Financial Times that it was early talks with Facebook that it came stably. Although no application has yet been submitted to the CFTC, according to Commissioner Giancarlo, the body is trying to investigate whether crypto falls under its jurisdiction.