WSJ: Facebook Crypto Project Seals $10M Investment Each From Visa, Mastercard, Paypal, Uber

Facebook has allegedly sealed backing from over a dozen firms that include Visa, Mastercard, PayPal and Uber for its soon-to-be-unveiled cryptocurrency project. The news was reported by the Wall Street Journal (WSJ) on June 13.

Source ostensibly familiar with the matter told the WSJ that the firms — extending across the finance, e-commerce, venture capital and telecoms industries — have each invested around $10 million in a consortium that will govern Facebook’s forthcoming digital token, dubbed Libra.  

The WSJ’s sources reiterated details that had previously surfaced in regard to the highly secretive project, notably that the social media giant’s forthcoming crypto will allegedly be a fiat-pegged stablecoin, pegged to a basket of national fiat currencies to avoid price volatility.

Talks with some of the investment partners remain ongoing, the sources claimed, and the eventual list of consortium members could reportedly change. The consortium itself is allegedly to known as the Libra Association, the report adds.

The report claims that several members have expressed concerns that Facebook’s token could be exploited for money laundering or terror financing purposes.

WSJ reports that purportedly neither Facebook, nor individual consortium members, will control the cryptocurrency, although some members could operate nodes on the network that underlies the crypto payments network — again according to sources allegedly familiar with the setup.

In addition to the aforementioned companies, fintech firm Stripe, travel reservations site and e-commerce site MercadoLibre have all signed on to the project, according to several of the sources. Consortium members have all ostensibly been asked to co-sign the coin’s white paper, allegedly set to be published on June 18.

As Cointelegraph has reported, rumors of Facebook’s plans to integrate a cryptocurrency for WhatsApp users first surfaced in December 2018, with further alleged details of the clandestine project emerging in February.

Notably, Facebook purportedly plans to rehaul its messaging infrastructure and integrate its three wholly-owned apps — WhatsApp, Messenger and Instagram — under one canopy, bringing its cryptocurrency potential exposure to a combined 2.7 billion users each month.

In May, Facebook reportedly acquired the “Libra” trademark, and there are thought to be around 100 people working on the project, with over 40 listings for the workforce still open.  

Earlier this month, Cointelegraph reported that Facebook employees will allegedly be able to receive part of their salary in the coin.

5  Comments Add a comment…

  • WSJ: Facebook Crypto Project Seals $10M Investment Each From Visa, Mastercard, Paypal, Uber cateo turex  

    Definitely that shall slaughter many altcoins, forget massive adoption of your loved coin, Facebook Coin will eat the cake.

    Buy Bitcoin only..


  • WSJ: Facebook Crypto Project Seals $10M Investment Each From Visa, Mastercard, Paypal, Uber Brian C  

    The whole “…used for money laundering or terrorism” thing has gotten as old and silly as the whole “blockchain, not bitcoin” “argument. “


    • Ivan Franciscovich Brian C  

      So true. Any money laundering gone through cryptocurrencies is completely dwarfed by the ongoing billions and billions worth of scams taking place by the banking system, through “good” old dollars and euros.


      In stead of “Know Your Customer” procedures, we need “Know Your Bank” procedures.


  • Ivan Franciscovich  

    It appears an attempt by a kartel of enterprises, including some of the financial establishment to dominate the digital currency market and possibly turn cryptocurrencies obsolete. This will not happen, as “stable coins”, being pegged to fiat and bearing counter party risk, are by definition not cryptocurrency. This will perpetuate the existing cumbersome, risky and expensive payment systems run by the banks and since it is to be operating on a world wide scale, there will be serious challenges around clearing and settlement. Cryptocurrencies will continue to have their own, much bigger merits in this.


    Having said that, it is also – and probably more so – an attempt by facebook to become the Western version of WeChat (or rather Weixin), integrating social media, messaging, exchange of goods and services, and payments. While there may be room in the market for that, it seems unlikely that facebook can copy the succes formula of Weixin in China to the West. These are different markets, with different dynamics, different demographics, different geopolitical forces and eventually more competition.


    My take therefore is that while the formula may be successful to some extend, any fears of “facebook taking over the crypto space” are unjustified.


  • Mindas Zabas  

    it will never be truly decentralized currency, like ETH or BTC, Global coin will be controlled by facebook and will be a good target for regulators.


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