The cryptocurrency that has been rumored for a long time on Facebook could no longer be a rumor within a week.
The Wall Street Journal
He reported Friday that the social media giant had recruited ?more than a dozen? of companies to finance his next cryptocurrency, reportedly called Libra.
Among those companies there are notable names in the payment processing space, such as PayPal, Mastercard and Visa.
Facebook launches its Libra white paper next week, it will do so with the blessing of several companies that could have been harmed by this if they had not invested in it.
As the Journal report noted, these companies will benefit if Libra really takes off.
He wants about 10 million dollars from each sponsor, and that money would be used to create the digital currency.
Sponsors could then act as nodes in a new payment network that would verify and record transactions, but the Journal's report said neither Facebook nor the sponsor group would directly control Libra.
If the report is created
Facebook users can send Libra to each other or use it to facilitate purchases within or outside the social network.
It is not difficult to see why companies like PayPal and Visa would like to support Libra; Facebook has more than two billion users that could potentially get into the Libra car.
It's also easy to see why Facebook would do this. It could be a new source of income for a company that relies primarily on digital advertising at this time. Facebook could benefit financially from becoming an electronic commerce platform even more than it already is.
It may be the easiest way to see why people can be skeptical about this.
Facebook's privacy history is remarkably poor and some may not trust the company to do this correctly.
This could also make Facebook seem even more a monopolistic titan for those who want the company to break up, such as co-founder Chris Hughes