Social media behemoth Facebook has released the white paper for its long-rumored cryptocurrency project. The company is working on a stablecoin called Libra, which will operate on its own and scalable Libra bockchain. The project is backed by a variety of assets to add value to it.
Libra will be used on Facebook, but also on Whatsapp and Instagram. This gives the coin the potential to reach billions of people worldwide. Facebook is being used by 2.38 billion people worldwide, Whatsapp has 1.5 billion users, while Instagram has over one billion active users.
Even though Facebook is creating its own blockchain, the company wants to keep its network open source. This would help the company to create an open and interoperable ecosystem for financial services and it would broaden inclusion.
Even though the project is led by Facebook, a consortium will govern Libra. This Libra Association oversees the development of the ecosystem. This group is based in Geneva, Switzerland. The association will launch its own security tokens called Libra Investment Token, as a way to fund incentive programs and cover operating costs.
Even though Facebook doesn’t need financial backing, the company reached out and got support from dozens of firms. Each enterprise that wanted a validator node, needed to invest at least $10 million into the project. Each node is likely to have annual costs of approximately $280.000. According to rumours companies like Visa, Mastercard and Paypal have signed up already. Companies like Coinbase, Spotify, Vodafone, Ebay, Stripe, Uber, Lyft, Booking Holdings and several investment firms are also on board.
It’s likely that a test version of Libra will be unveiled in the coming weeks.
Also published on Medium.