Facebook’s cryptocurrency gets $10m each from Uber, Paypal, Mastercard and Visa: Report

Facebook has found massive backers for its new cryptocurrency, Libra, which is scheduled to be launched in 2020. Market giants like Mastercard, Visa, Paypal and Uber have signed up to become a part of the consortium, the Libra Association, which will govern the virtual currency, the Wall Street Journal reports.

With Argentina-based e-commerce site MercadoLibre, fintech company Stripe and hotel-reservation website Booking.com having already signed up for the project, Facebook is reportedly planning to go international.

Bitcoin, the first cryptocurrency, was launched in 2008. Since then, hundreds of cryptocurrencies have been introduced. At present, there are more than 2,000 digital coins in practice. Libra seems to be the latest addition to the list. It is especially significant not only because Facebook, one of the biggest companies in the market, is launching it but also because various other big names are backing it.

Each company that is backing the Facebook cryptocurrency is expected to invest $10 million in a fund that is going to be used for the Libra project. Facebook plans to raise $1 billion to start a crypto-based payment system. Sources revealed to the publication that, to avoid volatility, the digital coin will be linked to a number of government-issued currencies.

Moneycontrol could not independently verify the report.

As per the report, neither Facebook nor any other member of the consortium is going to have direct control over the cryptocurrency. Rather some of them will act as 'nodes' to verify transactions and keep records.

The white paper for the project, which is expected to be released next week, will be signed by all partner companies, the report stated.