Facebook cryptocurrency reportedly under development in Switzerland

Marco Green
May 20, 2019

According to a report, the Facebook cryptocurrency would be tied to the United States dollar and could, therefore, remain stable unlike Bitcoin which has crashed.

Social media behemoth Facebook registered a crypto-oriented company called Libra Networks in Switzerland, Reuters reports.

A Facebook cyrptocurrency would be tied to the USA dollar, Swiss publication Handelszeitung said, and could therefore remain stable unlike bitcoin, which started crashing back in 2017.

A Reuters report published on Friday (May 17) seems to suggest that Facebook's blockchain-powered payments initiative (codenamed "Project Libra") has taken another step forward toward getting launched.

"At a private dinner Facebook hosted during a recent crypto conference, one attendee told Cheddar that Facebook employees pitched the idea of creating a decentralized digital currency for the social network's 2 billion users."

Per a report by The New York Times, sources familiar with the project revealed that more than 50 engineers are now working on the new cryptocurrency that will be functional over the company-owned WhatsApp network.

At the time, Facebook declined to comment on the currency plans, but did confirm it's working on blockchain systems.

"Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology", it said in a statement.

The U.S. Senate Banking Committee this month sent an open letter to Facebook CEO Mark Zuckerberg asking how a new cryptocurrency-based payments system related to legal, regulatory, privacy and consumer protection concerns, following a Wall Street Journal report.

"I'm thinking about going back to decentralised or Blockchain authentication".

Facebook has over 2.38 billion users globally and launching cryptocurrency will allow them make payments using a virtual currency like Bitcoin.

Other reports by Click Lancashire

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