According to the report, a number of corporate giants from various sectors are part of the governing association of Facebook’s cryptocurrency. The consortium, dubbed “Libra Association” will oversee the functioning of the blue and white brand’s native cryptocurrency with many of its members expected to be hosting their own nodes to validate and execute transactions on the blockchain. The Block reports that each of the consortium’s members were charged $10 million USD by Facebook to get the rights to manage their node.Some of the newly unveiled members of the Libra Association include Andreessen Horowitz, Union Square Ventures, Coinbase, Spotify, eBay, Lyft, and Vodafone, among others.
This comes just one day after it was reported that the crypto project of Facebook had onboarded major stakeholders including the likes of Mastercard, Visa, PayPal Uber. Initially, Facebook had plans to work with Wall Street giants like Goldman Sachs and JP Morgan for its crypto initiative but later decided against it seeing the general lack of interest for digital assets among institutional investors. A person close to the matter told the publication that Facebook is still looking for about 100 members in the governing association. Interestingly, this sits in line with a previous report that noted that Facebook was charging $10 million per node which could potentially put the total fee to a whopping $1 billion figure.
The funds invested by the stakeholders will be used to back Facebook’s digital coin. The cryptocurrency will supposedly be pegged to a basket of international government-backed securities to ensure that they do not mirror the volatile fluctuations of traditional cryptocurrencies like bitcoin [BTC]. Despite the fast-paced behind the scenes developments pertaining to Facebook’s crypto ambitions, the billion dollar firm has not made any official statement about the project until now. However, this could change very soon as reports suggest that the firm is poised to publicly release the initiative’s white paper on 18th June ’19.
With a total user base of more than two billion users across the globe, Facebook’s entry into the crypto universe is easily the most anticipated one yet. Having had talks with the regulators of the government, the corporate has been successful in playing its cards right until now. However, it remains to be seen whether the company will be able to leverage its brand to propel a variant of digital currencies into the mainstream, despite its somewhat unpopular rapport among crypto evangelists.