Facebook to unveil new cryptocurrency
Team Udayavani, Jun 17, 2019, 4:14 PM IST
London: Facebook is set on Tuesday to unveil a bid to bring cryptocurrency payments into the mainstream, reportedly with the endorsement of governments and financial giants.
The world’s biggest social network is expected to outline details of a virtual currency launching next year that it hopes will avoid the rollercoaster volatility of “blockchain” technologies such as bitcoin.
The companies along with venture capitalists and telecommunications firms will reportedly invest around USD 10 million each into the consortium.
Facebook has been trying to ward off hostile regulatory scrutiny after a series of privacy abuses and the spread of fake news.
The consortium will be managed externally and will seek to build trust among consumers by pegging the virtual coin to a basket of currencies including the dollar and euro, the Journal said.
Facebook has already sought blessings from the US Treasury and the Bank of England, the BBC reported last month.
Regulators have been reticent about cryptocurrencies, not only due to potential abuse by criminals but the wild swings in their value harming consumers.
With more than two billion users across its platforms, which include WhatsApp and Instagram, Facebook could have the clout to bring cryptocurrency out of the fringes and emulate the likes of WeChat in China, where the US site is banned.
WeChat allows its users to chat, shop and play games without leaving its platform, generating more revenue by offering a one-stop portal.
Buffeted by the privacy storms, chief executive Mark Zuckerberg has promised a new direction for Facebook built around smaller groups, private messaging and payments.
But it will need to overcome questions of trust and privacy, not least over how financial data will be stored. Some analysts are betting that the heavyweight Libra consortium will help to do that.
Facebook’s crypto initiative could facilitate shopping, applications and gaming, and would leverage its broad user base in Asia, RBC analyst Mark Mahaney said in a research note last week.
It “may prove to be one of the most important initiatives in the history of the company to unlock new engagement and revenue streams”, he wrote.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Markets fall in early trade amid unabated foreign fund outflows
New software for fast-tracking project approvals: Karnataka Minister Patil
In-flight passengers can access WiFi services only when allowed, say new rules
SEBI mulls separation of non-regulated activities; ‘cross-default’ definition for debenture trustees
Sensex plunges 942 points to settle at nearly 3-month low; RIL, HDFC Bank biggest drag
MUST WATCH
Latest Additions
Union Minister H D Kumaraswamy booked for threatening police officer
Bantwal: Theft at Shree Mahalingeshwar temple
Delhi riots case: HC dismisses plea by Khalid Saifi against attempt to murder charge
States not empowered to take over all private properties for distribution to serve common good: SC
Chhattisgarh NAN ‘scam’: FIR against 2 retired IAS officers, former AG
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.