Facebook to reveal new cryptocurrency Libra

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Social Media giant Facebook is all set to reveal its cryptocurrency Libra on Tuesday. Facebook will unveil a white paper, explaining the basics of the cryptocurrency, which has reportedly gained widespread support from industry partners and governments, including Mastercard Incorporated, Visa Inc., and PayPalHoldings, Inc.

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These companies will form an independent consortium called Libra Association and will invest around USD 10 million.

The company is expected to outline details of a virtual currency launching next year that it hopes will avoid the rollercoaster the volatility of blockchain technologies such as bitcoin.

As per the reports, unlike other cryptocurrencies, Libra will be a ‘stablecoin’ aimed at preventing complications due to price fluctuations while carrying out transactions. Hence, it will be pegged to a basket of currencies rather than a single one like the US dollar.

WeChat is the one that allows its users to chat, shop and play games without leaving its platform, generating more revenue by offering a one-stop portal.

In a research note last week, RBC analyst Mark Mahaney has said that, ” The Facebook’s crypto initiative could facilitate shopping, applications and gaming, and would leverage its broad user base in Asia. It may also, prove to be one of the most important initiatives in the history of the company to unlock new engagement and revenue streams.”

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