Facebook’s cryptocurrency gets considerable support
Facebook also wants to trade coins.(Photo: iNTROKiNG)
Facebook wants to introduce its own crypto currency Libra . It receives support from over twelve companies including Visa, Mastercard, Paypal and Uber, according to the Wall Street Journal (Paywall) . Each of the companies is investing $ 10 million to finance the cryptocurrency and form an administrative organization called the Libra Association. According to the report Facebook wants to publish its plans next week, until then, the number and composition of the partners may change. Overall, Facebook wants to raise about $ 1 billion in investment for Libra. The cryptocurrency should be introduced next year.
- WBS GROUP, Germany-wide (Home Office)
- ERGO Group AG, Dusseldorf
Nearly 2.5 billion Facebook users should be able to send each other with Libra money and make purchases on the social network or other websites. Blockchain and network of the new cryptocurrency should be operated separately from Facebook. The members of the Libra Association could operate Nodes and verify transactions, the Wall Street Journal writes.
Libra, like other cryptocurrencies, is based on the blockchain principle, but will be linked to a selection of government-issued currencies. This is to prevent speculation and price fluctuations such as Bitcoin and Ethereum. In addition, Facebook wants to avoid payment fees for credit card transactions from sellers.
At the beginning of January 2018, Facebook banished all advertising for cryptocurrencies from its site . The price of Bitcoin then collapsed by about ten percent. After the advertising ban Facebook was even advised because of various data scandals in the headlines. Only in March it became known that Facebook saved the passwords of many millions of Facebook users in plain text . For some users, Facebook requested the private password of the email account during the registration process .