Facebook's long-rumored cryptocurrency might not be a rumor anymore a week from now. Not only that, the social network says that its digital dollar will be back by several major financial institutes like Visa and Mastercard, along with companies such as PayPal, Uber, and Booking.com, to name a few.
Facebook's much-anticipated cryptocurrency project, more than a year in the making, will be unveiled early next week.
Each of these firms will invest around$10 million to fund further development of the currency and become part of the Libra Association. It's expected to act as a "stablecoin" meaning its value will be attached to a number of government-issued currencies in order to limit the volatility of the value of the coin; an issue which Bitcoin has faced for some time. The move into crypto is considered a key element of Facebook's so-called pivot-to-privacy, a top to bottom overhaul of the social network that CEO Mark Zuckerberg has said will resolve numerous criticisms around privacy and misinformation on Facebook.
The social media giant reportedly wants to give the "1.7 billion adults globally" who now don't have "access to a traditional bank" and are "outside of the financial system" an opportunity.
Facebook has found massive backers for its new cryptocurrency, Libra, which is scheduled to be launched in 2020.
The Libra Blockchain will be open-sourced under an Apache 2.0 License as of the day of the announcement, expected to occur on Tuesday, June 18, according to the blog post by the social-media giant and as originally reported by TechCrunch. It will operate within Facebook's messaging infrastructure, which covers WhatsApp, Instagram, and Facebook Messenger.
Facebook reportedly plans to release a white paper introducing the coin and detailing how it will work before the month ends.
Facebook has attempted to launch two digital tokens in the past without success.