Libra, the Facebook coin is launching this week and has already gained support from big names in the spheres of technology and finance.
Facebook is a US-based social media company that is considered a member of the Big Four tech companies with Google, Amazon and Apple. The company was founded in 2004 by Mark Zuckerberg and was originally meant for Harvard students, however, it became mainstream in 2006.
As reported by the WSJl, the company along with Visa, Mastercard, Uber, PayPal and Booking.com, is looking forward to do fundraising to collect $1 bln. It is expected for around 100 firms to participate.
Facebook’s new cryptocurrency is a stablecoin, a crypt coin related to a “stable” asset. The currency is expected to launch in twelve countries by 2020.
The crypto-asset has been in the development phase for over a year and is designed to make payments both on Facebook and other websites.
This new crypto coin, Libra, is expected to be very profitable for Facebook. However, in contrast with other coins such as Bitcoin, Libra will have strict regulations. This is because it is a widely known fact that crypto coins are used for crimes like money laundering and financial fraud.
The Libra whitepaper is going to be released on June 18.
Jeff Cartwright, the former director of regulatory risk at crypto exchange Coinbase, was hired by Facebook as a policy and compliance manager. Head of the United States Commodity Trading Commission stated that Facebook was in dialogue with the commission.