Twelve companies worldwide will invest about $10 million to back Facebook, the Wall Street Journal reported. Well-known companies, including Paypal, Mastercard and Uber, will participate in a consortium.
Facebook Global Holdings registered “Libra Networks” as a financial technology company on May 2.
Now the white paper, which is a authoritative report that informs readers concisely about a complex topic and its purpose is to help them understand and solve a problem or make a decision, is expected. According to Laura McCracken, head of financial services, its publication is expected on June 18.
Facebook's currency will be a stablecoin. It's not yet known how it will be used, though. It's also unclear how Facebook will deal with the complexities of international regulations. However, it could force governments to pay more attention to cryptocurrency.
Facebook has a significant advantage over its competitors. And that is that it has one of the largest networks in the world. Facebook's participation in cryptocurrency warns other companies about what they could face in the future.
Facebook's success could be seen as an opportunity to raise awareness about cryptocurrency. Many believe that Facebook with its coin will stimulate this market.
It is worth noting that Facebook's entry into cryptocurrency is being scrutinized closely as it does not have a particularly good reputation when it comes to the use of its customers' data. Let's not forget, in April 2019 the company shared hundreds of millions of user records.
