Social media giant Facebook’s yet-to-launch cryptocurrency appears to have attracted three major payments companies as backers, according to a report by The Wall Street Journal.
Visa, Mastercard and PayPal are set to be backers of Facebook’s cryptocurrency along with a number of other companies, including Uber. Each will invest approximately $10 million into a foundation that will govern the coin, the Journal said citing anonymous sources. That money will be used to create the backing for the coin, which will be pegged to a basket of fiat currencies.
Neither the governing body, called the Libra Association, nor Facebook will directly control the coin, according to the Journal. Sources also told the Journal that some members don’t fully understand how the coin will work or their role in the project.
Some members are also using the coin to widen their reach globally, with the Journal reporting Financial-technology firm Stripe Inc., travel-reservation site Booking.com and Argentina-based e-commerce site MercadoLibre Inc. signing on as well.
The cryptocurrency world could soon learn more details about the digital asset. The Information reported earlier this month that Facebook would release the white paper for its coin, outlining its specific details, later this month.
Ahead of its whitepaper, Facebook posted additional blockchain jobs this week as well, with the total number of openings reaching 28.
Facebook has been rapidly moving forward with its crypto plans, reportedly hoping to launch its “GlobalCoin” by Q1 of 2020, according to a BBC report last month. Tests are slated for later this year before launch in some countries, according to the report. Some speculate the token could be used for payments in messaging apps.
Facebook also registered an LLC in Geneva focused on blockchain developments under the name “Libra Networks” in early May.
As interest in the coin rose, a study from LendEDU also reported a crypto from the social media giant could entice new users to the space, particularly due to its Marketplace feature, with which Facebook users can buy and sell items locally.
On the regulation front, the Commodity Futures Trading Commission told the Financial Times it was in early talks with Facebook about its coming stablecoin. Though no application has yet been submitted to the CFTC, according to commissioner Christopher Giancarlo, the body is trying to discern whether the crypto would fall under its jurisdiction.