According to Wall Street Journal, financial and e-commerce companies, venture capitalists and telecom companies expect each company to invest about $ 10 million in Facebook's crypto currency project Libra. This money will be used to fund the creation of new government issued crypto currencies to avoid the strong fluctuations caused to other crypto currencies.
Last month, Wall Street Journal reported that Facebook was recruiting companies to support crypto currency-based payment projects and seeking to raise about $ 1 billion for the effort.
It's been a decade since bitcoin was born; consumers have hardly used this currency or hundreds of other crypto currencies to pay. Facebook is betting that they can change that with a crypto-based payment system built around the giant social network and billions of users.
However, even for some members of the company, the mode of operation or the role of money is still very vague. Many concerns revolve around regulatory hurdles in the U.S. and elsewhere with crypto currencies being very strict. Some members also expressed concern that crypto currencies could be used to launder money and fund terrorist organizations, a persistent problem with bitcoin and other crypto currencies.
However, the attraction of Facebook with nearly 2.4 billion monthly active users is too strong for many companies to participate in the project. Financial technology firm Stripe, travel booking website Booking.com and MercadoLibre, have also signed the project.
Neither Facebook nor its Libra Association members will directly control the currency. Some members may act as "nodes" on systems that verify their transactions and maintain records, creating a completely new payment network.
Card issuers like Visa and MasterCard have long been concerned that a tech giant could intrude into their business, creating a severely payment option with the card network. Participation in Libra allows them to closely monitor Facebook's payment ambition, while sharing the advantages for the project to gain appeal to consumers.
According to Tech channel 4.0