Facebook to Use Independent Foundation to Manage Cryptocurrency
By Luke Flowers – Crypto Speculator
The Information reported that social media giant Facebook is to permit control of its cryptocurrency to an outside or independent backers. This is a move they claim will inspire trust in the digital currency system to encourage users to buy and sell cryptocurrency as well as reassure financial regulators.
In the past couple of months, Facebook has reached out to financial institutions and tech companies to contribute capital to the foundation and also manage the cryptocurrency’s network. Their digital token, codenamed Libra, is expected to be released on June 18th. It has been developed to work as a borderless currency without having any transaction fees attached to it. It is likely to be marketed in developing countries where there is less trust in government-backed coins; allowing them to sell crypto and transact freely.
Facebook also plans to licence the right to operate nodes on its new digital currency network, where companies can be charged $10 million each for the privilege. Node operators can send a representative to the outside foundation. The social media giant hopes to launch Libra with over 100 nodes, thereby generating over $1 billion in licencing fees.
Afterward, Facebook will use these fees to back its digital currency with many different currencies and low-risk securities from various countries. This suggests that users will easily be able to exchange their Fiat or cash out crypto into the stable coin.
Libra will operate mostly as Facebook’s app environment, but the king of social media is planning to collaborate with merchants for it to be accepted as payment. Besides that, Facebook is also planning to introduce physical crypto ATMs in order to have local currencies exchanged for its token to get involved with buying and selling crypto.
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