Facebook is unveiling its new cryptocurrency, Libra, on June 18 via white paper. Plenty of regulatory red tape stands in the way of its launch, but the social network has already managed to woo more than a dozen companies into supporting Libra.
These include financial giants Visa and Mastercard, as well as tech companies such as PayPal, Uber, and Stripe. Each party is investing around $10 million into its development.
With Libra, Facebook users will be able to send low or no-fee payments to one another. It could also be used to purchase goods online, assuming e-commerce firms get on board.
The social network is even planning physical terminals that would allow people to convert their money into Libra.
The cryptocurrency will be a stablecoin — a token designed to have a stable price to prevent discrepancies and complications due to price fluctuations during a payment or negotiation process. Facebook has spoken with financial institutions regarding contributing capital to form a $1 billion basket of multiple international fiat currencies and low-risk securities that will serve as collateral to stabilize the price of the coin, The Information reports. Facebook is working with various countries to pre-approve the rollout of the stablecoin.