Mastercard, Visa, Uber and PayPal are all lending their unwavering support to Facebook on its new cryptocurrency GlobalCoin, according to reports reaching us.
The Wall Street Journal (WSJ) reported this on Thursday that the social media behemoth has signed deals with more than 12 backers for its crypto project GlobalCoin. This project is a stablecoin that’s been developed with utmost secrecy for more than 6 months.
It is also reported that all the backers will substantially support the project by investing an estimated $10 million in the GlobalCoin project as part of a governing association for the crypto currency.
Booking.com, MercadoLibre and Stripe, are also part of this groundbreaking project, according to the Wall Street Journal. Although the report doesn’t say the roles they’ll be playing.
Facebook announced to the general public that it would launch its GlobalCoin December last year, though the social media giant pointed out that it had been looking at crypto as far back as the last quarter of 2017. The crypto coin is likely going to be a stablecoin that’ll operate in the company’s messaging infrastructure – Instagram, WhatsApp, and Facebook Messenger.
Nevertheless, Facebook has kept sealed lips about the exact thing the GlobalCoin will be used for. BBC provides one possible explanation is that Facebook may be targeting retailers on the website, letting the billions of users on the platform buy discounted goods using the app’s own cryptocurrency. The crypto can be used to transfer value right from Facebook to any retailer, this would inevitably cut out any middle men like credit card companies, which would go a long way in positively increasing profits for retailers as suggested by BBC.
GlobalCoin is expected to be made public on the 18th of June.