PayPal, Uber, Visa among Companies Now Backing Facebook’s GlobalCoin

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A new report says that major U.S. companies Uber, Visa, Mastercard, and PayPal have all said they will back Facebook’s new cryptocurrency.

According to the Wall Street Journal, the social media giant has managed to attract over a dozen major backers as it prepares to launch its own cryptocurrency.

GlobalCoin, as Facebook’s stablecoin is known, is nearing public launch after being in secret development for well over six months.

The report claims that the new backers are expected to invest approximately $10 million each in the crypto project and that each will be part of a consortium set to oversee the cryptocurrency’s governance.

The WSJ also names Booking.com, Stripe, and MercadoLibre as other companies that have joined the project. However, unlike in the case of the aforementioned quartet, the publication does not categorically specify what roles these firms will play.

Facebook’s journey towards the launch of its own cryptocurrency dates back to the last couple of months in 2017. However, plans began to emerge last year when it constituted a blockchain team, with reports surfacing in December 2018 that the social media giant was creating GlobalCoin.

It is expected that the new crypto will be a stablecoin that Facebook wants available to the company’s global users on the messaging platforms of Facebook Messenger, WhatsApp, and Instagram.

While these reports continue to gather intensity, Facebook itself has remained tight-lipped on exactly what the GlobalCoin crypto’s usage will entail.

However, a recent BBC report suggested that the social media giant could be looking at having the cryptocurrency used at retail outlets. Here Facebook would make it possible for GlobalCoin holders to use the coin to pay for discounted goods.

As per that report, the Facebook community would use the stablecoin to access direct value transfers to the retailer, without the need to use third-party credit card companies. Cutting out the “middlemen” companies, according to the BBC, will help the targeted retailers turn profits.

Earlier this week, Facebook reportedly revealed that its GlobalCoin stablecoin will be ready for unveiling on Tuesday, June 18. The company previously engaged major crypto platforms Coinbase and Gemini on the subject of trading and market liquidity.


Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.

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