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All you need to know about Facebook’s cryptocurrency announcement

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…

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