Facebook is set to officially announce its cryptocurrency with a white paper today, according to multiple reports. Few facts about Facebook‘s crypto token, which could be called Libra or GlobalCoin, have been made public ahead of the announcement. Here's what we know so far: It will be a stablecoin, pegged to a basket of currencies Facebook plans to roll out its cryptocurrency in 2020. To avoid the wild swings that have dogged other cryptocurrencies, it will be pegged to a basket of government-issued currencies. This type of currency is known as a stablecoin. For now, no one knows which currencies Facebook's cryptocurrency will be pegged to, or even how its value will be calculated and backed. The Block Crypto reports, based on an introductory blog post it viewed, that Libra will be built on the Libra Blockchain, a “secure, stable, and reliable blockchain” and backed by the Libra Reserve, “a reserve of real assets”, which will give the cryptocurrency “stability, low inflation, global acceptance, and fungibility". Facebook gave up absolute control over it to avoid regulation Last week, Facebook roped in more than a dozen companies including Visa, Mastercard, PayPal and Uber to back the new cryptocurrency. Each company will invest around $10 million in a consortium, called the Libra Association, which will fund and govern it. Each of the companies in the consortium will validate transactions made with Facebook’s cryptocurrency and in exchange get a say in how the token is governed. By creating an independent foundation to oversee its cryptocurrency, Facebook is introducing a level of decentralisation…
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
News
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
Advert
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
News
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...
News
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...