By Visa, Mastercard, Uber and Paypal have announced that they are all backing Facebook’s forthcoming cryptocurrency, GlobalCoin, as per a new report.
As reported by the Wall Street Journal on Thursday, the social media network has partnered with more than a dozen backers for its GlobalCoin cryptocurrency. The crypto is a stablecoin which has been under secret development for than half a year. Each of the new investors will inject roughly $10 million into the project as part of a governing consortium for the stablecoin.
Furthermore, Booking.com, Stripe and MercadoLibre have joined the project as per the report from the Wall Street Journal, however, the report does not divulge which roles they’ll be playing.
Facebook first announced that it was launching GlobalCoin in December 2018. However, the company first announced its foray into cryptocurrency back at the end of 2017. The upcoming cryptocurrency is expected to be a stablecoin which will work within the company’s messaging services, ie Whatsapp, Instagram and Facebook Messenger.
Facebook has, however, been notably secretive as to what exact purpose GlobalCoin will serve, but the BBC has suggested that the social media giant might be looking to retailers to allow its users to purchase goods at discounted rates with the cryptocurrency.
The stablecoin would be utilised to transfer funds directly from Facebook to retailers, effective cutting out credit card companies, which the BBC believes could help retailer profits. GlobalCoin is now expected to be revealed to the public on June 18.
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