Project Libra, Facebook Inc.’s digital currency plan to roll out a one-of-a-kind stablecoin that retailers can use is catching speed and will be set to go in 2020.
A few weeks ago, the brains behind the project promised to release a white paper that would explain how this crypto coin will operate and why it would be a better choice (compared to already existing cryptocurrencies like Bitcoin) for merchants and in-store retailers to trade-in.
And the word is already out that four payment giants are ready to be part of Facebook Inc.’s management consortium known as the Libra Association— whose members will co-manage the Libra coin.
Some of the payment giants set to join the union include PayPal Holdings Inc., Mastercard Inc., Stripe Inc., Visa Inc., and over a dozen other firms who are investing $10 million each to finance the alliance.
However, Facebook has chosen to remain silent ahead of the impending official release of Project Libra’s details, leaving the names of partners to media and public speculation. But at least we know that some members of the Libra Association will serve as the Nodes of the crypto’s network. The role of nodes is to verify and record all transactions within the system.
Looks like Facebook Inc.’s project Libra is gaining more support than expected (mainly) by critics who’ve been asking lots of questions about the practicality and validity of the initiative— making it look like a rushed decision by the world’s leading social networking platform.
Some observers have even purported that Facebook’s extensive (and growing) user base and role in eCommerce is one of the major reasons Payment firms are chipping in to monitor the network.
“The Payment sector is not ready to risk being left out in a project that could become a potential threat to their bottom line,” According to Jordan Mckee, payment expert, and director for research at 451 Research.
“Second; it is a way to keep an ear on the progress of Facebook’s cryptocurrency initiative and have the power to influence its approach,” alleges the analyst.
Unlike in most digital currencies, the Libra coin’s value will be tied to a string of currencies controlled by government bodies. That is how Facebook and its consortium plan to stabilize the coin to avoid exaggerated fluctuations in value as it has been the case with the likes of Bitcoin and the rest.
Such fluctuations encourage harmful practices like buy-and-hold habits among users and discourage acceptance among retailers because sometimes value changes radically in the course of a transaction.
Well, some already existing new-age currencies known as stablecoins already conform to the standard approach of pegging the value of to fiat currencies such as the dollar. Hopefully, Facebook’s coin will hold the fort for merchants when it kicks off in 2020.
Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of high risk merchant account UK has helped thousands of business owners save money and time.