- 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 global users
Facebook Inc has enlisted more than a dozen companies including 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 people 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 did not immediately respond to requests for comment.
The cryptocurrency, under Facebook’s “Project Libra”, is reportedly aimed at allowing Facebook’s global users to transfer money 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, employees 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 centralised” than Bitcoins and the company would tap outside firms to help 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 company, headed by Messenger chief David Marcus, to explore Blockchain technology and its potential use for the platform.
Earlier in June, the company ignited a discussion about its crypto Stablecoin initiative with the US Commodity and Futures Trading Commission (CFTC).