Facebook’s Crypto Project Gets Major Backing from Dozens of Industry Heavyweights
Cryptocurrency media outlet The Block on June 14, 2019, revealed the complete list of stakeholders of Facebook’s high-profile digital currency project.
Heavyweights Behind the Libra Project
According to the report, a number of corporate titans from various industries are part of the governing association of Facebook’s cryptocurrency. The consortium, dubbed “Libra Association” will oversee the functioning of the blue and white brand’s native cryptocurrency with many of its members expected to be hosting their own nodes to validate and execute transactions on the blockchain. The Block reports that each of the consortium’s members were charged $10 million by Facebook to get the rights to manage their own node.
Some of the newly unveiled members of the Libra Association include Andreessen Horowitz, Union Square Ventures, Coinbase, eBay, Spotify, Lyft, and Vodafone, among others.
This comes just one day after BTCManager reported that Facebook’s crypto project had onboarded major stakeholders including the likes of Mastercard, Visa, Uber, and PayPal.
Initially, Facebook had plans to work with Wall Street giants like Goldman Sachs and JP Morgan for its crypto initiative but later decided against it seeing the general lack of interest for digital assets among institutional investors. A person close to the matter told the publication that Facebook is still looking for about 100 members in the governing association. Interestingly, this sits in line with a previous report that noted that Facebook was charging $10 million per node which could potentially put the total fee to a whopping $1 billion figure.
The funds invested by the stakeholders will be used to back Facebook’s digital coin. The cryptocurrency will supposedly be pegged to a basket of international government-backed securities to ensure that they do not mirror the volatile fluctuations of traditional cryptocurrencies like bitcoin (BTC).
Things to Get Official This Week
Despite the fast-paced behind the scenes developments pertaining to Facebook’s crypto ambitions, the multi-billion dollar company has not made any concrete official statement about its project until now. However, this could change very soon as reports suggest that the firm is poised to publicly release the initiative’s white paper on June 18, 2019.
With a total user base of more than two billion users across the globe, Facebook’s entry into the cryptoverse is easily the most anticipated one yet.
Having had talks with government regulators and digital currency custodians, the corporate has been successful in playing its cards right until now. However, it remains to be seen whether the company will be able to leverage its brand to propel a variant of digital currencies into the mainstream, despite its somewhat unpopular rapport among crypto evangelists.