Economy

Goldbug Schiff: Facebook’s Crypto Will be Bad for Bitcoin (BTC)

Goldbug Schiff: Facebook’s Crypto Will be Bad for Bitcoin (BTC)

Reports last week said its planned launch is slated for June 18, and now it appears that the cryptocurrency, Libra, has some legit backers, according to the Wall Street Journal.

According to another report, Facebook has been planning to enlist around 100 companies as "nodes" in the network, so none of the company can have a stronger hold than the other on the digital currency, not even Facebook.

Several high profile companies invested in Facebook's cryptocurrency project.

As per the report, neither Facebook nor any other member of the consortium is going to have direct control over the cryptocurrency.

Facebook has been rapidly moving forward with its crypto plans, reportedly hoping to launch its "GlobalCoin" by Q1 of 2020.

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Before this, companies like MercadoLibre, an Argentina-based e-commerce platform; Stripe, US-based payments technology company; and Bookings.com (a hotel booking platform) had also made a decision to support the Facebook-backed cryptocurrency. Since then, hundreds of cryptocurrencies have been introduced.

Facebook's upcoming cryptocurrency, aka "GlobalCoin" and "Libra", will reportedly be governed by a new consortium of corporations and non-profit organizations. The objective of this is to avoid volatility in the price, Cointelegraph reports. The past year has seen a boom in crypto projects related to stable coins. Facebook has spoken with various financial institutions to create a $1 billion basket of multiple worldwide fiat currencies that will serve as a collateral to stabilize the price of the coin.

Facebook's endeavor into the blockchain sector is more of an effort to reduce transactional costs for its e-commerce segment internally and across the internet.

The borderless, transaction fee currency is expected to be used across Facebook, Messenger, WhatsApp, and Instagram. It's expected that Facebook users will be able to transfer the digital coin to each other and use it to purchase goods and services both on Facebook and across the internet.