LONDON: Facebook is set Tuesday to unveil a bid to bring cryptocurrency payments into the mainstream, reportedly with the endorsement of governments and financial giants.
The world’s biggest social network is expected to outline details of a virtual currency launching next year that it hopes will avoid the rollercoaster volatility of “blockchain” technologies such as bitcoin.
Facebook is setting up a consortium called “Libra” which, according to the Wall Street Journal, has been joined by more than a dozen companies including Visa, Mastercard, PayPal and Uber.
The companies along with venture capitalists and telecommunications firms will reportedly invest around USD 10 million each into the consortium.
Facebook has been trying to ward off hostile regulatory scrutiny after a series of privacy abuses and the spread of fake news.
The consortium will be managed externally and will seek to build trust among consumers by pegging the virtual coin to a basket of currencies including the dollar and euro, the Journal said.
Facebook has already sought blessings from the US Treasury and the Bank of England, the BBC reported last month.
Regulators have been reticent about cryptocurrencies, not only due to potential abuse by criminals but the wild swings in their value harming consumers.
With more than two billion users across its platforms, which include WhatsApp and Instagram, Facebook could have the clout to bring cryptocurrency out of the fringes and emulate the likes of WeChat in China, where the US site is banned.
WeChat allows its users to chat, shop and play games without leaving its platform, generating more revenue by offering a one-stop portal.
Buffeted by the privacy storms, chief executive Mark Zuckerberg has promised a new direction for Facebook built around smaller groups, private messaging and payments.
But it will need to overcome questions of trust and privacy, not least over how financial data will be stored. Some analysts are betting that the heavyweight Libra consortium will help to do that.
Facebook’s crypto initiative could facilitate shopping, applications and gaming, and would leverage its broad user base in Asia, RBC analyst Mark Mahaney said in a research note last week.
It “may prove to be one of the most important initiatives in the history of the company to unlock new engagement and revenue streams”, he wrote. (AGENCIES)
SPO-WC-IND-BREAK
Indian team to take two-day break after Pakistan win
Manchester, June 17 (PTI) A jubilant Indian team, led by skipper Virat Kohli, will take a couple of days off to relax and rejuvenate after their dominating win over Pakistan in the World Cup here.
Two-time former champions India dished out yet another professional performance on Sunday to outwit arch-rivals and 1992 winners Pakistan by 89 runs to stay on course for a semifinal spot.
“Indian team will now have a two-day break,” the Indian team management said.
India will next take on Afghanistan on June 22 at Southampton.
India have a couple of injury concerns with pacer Bhuvneshwar Kumar sidelined with a hamstring injury for at least next two World Cup games.
Opener Shikhar Dhawan, who had suffered a hairline fracture on his thumb during a match-winning 117 against Australia on June 9, has also been ruled out of three matches. (AGENCIES)
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