According to reports from Forbes Magazine, Social media platform Facebook has managed to gain a large sum in investments for its digital asset project. The social media giant was able to gather over a dozen investors. The companies that will invest in Facebook’s payments scheme include renowned payments processors: PayPal Holdings, Mastercard, Visa, and Uber Technologies to name a few.
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Facebook Raised $120M in Investment for Libra
The one dozen investors will reportedly invest about $120 million in Facebook’s endeavor. The company’s that will form the group of investors for Facebook’s payments project, the Libra, will reportedly invest about $10 million each to make up the $120 million investment. Per the Wall Street Journal, the consortium of companies that will have a stake in Facebook’s new initiative cover sectors like e-commerce, finance, VC, Telcom, and payments processors.
According to people familiar with the report, the funds that have been raised would be used to facilitate the creation of Facebook’s Libra coin. The Libra coin is internally called GlobalCoin, per the report.
Cryptocurrency Market Update: Facebook is Set For The New Initiative This Week and for a 2020 Launch
It is clear that Facebook may be planning to announce its new project this week, after many weeks of rumors about the development of a digital asset by the social media giant. While the Libra coin, which is reportedly a stablecoin, is scheduled for launch in Quarter 1 of 2020. The coin might debut in over a dozen countries around the globe with its primary focus on world emerging markets.
Additionally, Mark Zuckerberg’s creation has opted to hire Ed Bowles, a senior British bank lobbyist, to work as Facebook’s director of public policy via the platform’s London extension. The move is designed to prepare Facebook as it may face more political and regulatory checks in Europe following the creation of its GlobalCoin. Ed Bowles, who currently serves as Standard Chartered’s European chief of corporate and public matters, will join Facebook by September of this year.
Cryptocurrency Market Update: What Will be the Impact of Facebook’s Libra on the Already Existing Tokens?
Caitlin Long a Bitcoin and Blockchain advocate, who is also a 22-year Wall Street veteran, recently estimated that Facebook’s forthcoming token will offer a host of benefits to the existing cryptos. It is predicted that the GlobalCoin will compete with the existing payment systems like PayPal, and credit cards. In any case, a recent study found that 18% of adult Americans who would be want to invest in Facebook’s digital token. While the majority of the 18% of adult Americans are looking to use the GlobalCoin on Facebook.
Despite the above positive assumptions about Libra, the matter isn’t still fully embraced with optimism in the crypto space. It should be recalled from an earlier report by Smartereum, that there are concerns for the Libra coin or GlobalCoin. There are fears that its launch will negatively impact the position of top digital assets like Bitcoin. Whether both predictions will be feasible or not remains to be seen. The only way to determine the outcome of Facebook’s new exercise will be after the launch of GlobalCoin which is scheduled for 2020.