Facebook’s own cryptocurrency is speeding closer to launch. Previously believed to be called FB GlobalCoin, the digital currency has reportedly earned support from a dozen reputed financial organizations. Interestingly, Facebook might not call its virtual money GlobalCoin, indicates recent developments.

Facebook has apparently gained the trust and backing of over a dozen major financial organizations for its own brand of cryptocurrency. The currency could be officially announced as early as next week. Owing to the nature of the cryptocurrency, Facebook has opted to get support from established digital transactions companies including Visa, Mastercard, and PayPal. Surprisingly, the social media giant has also received backing from Uber. In other words, Facebook’s digital money could be easily and quickly used by Uber’s passengers as well.

The companies backing Facebook’s cryptocurrency will essentially invest about $10 million each. The investment is rather surprising owing to the intended purpose of the funds. It appears Facebook would use the capital infusion to further develop the cryptocurrency platform. The social media company is expected to use most of the funds to build a robust infrastructure. Moreover, Facebook is also strengthening the platform by making use of complex but highly reliable blockchain technology.

Facebook was rumored to be in the final stages of developing its own cryptocurrency for quite some time. In our previous report about the same, we had mentioned that Facebook could name its cryptocurrency as GlobalCoin. There are no confirmed reports to support or reject the claims yet. However, a new consortium, reportedly referred to as Libra Association came into existence recently. The consortium is officially a new financial services organizations called Libra Networks. The organization was founded in Switzerland. Interestingly, the organization’s parent is Facebook. The company’s official description categorically mentions it is a developer of financial technologies, the blockchain, and data analytics.

A collection of companies including Visa, Mastercard, PayPal and Uber will invest around $10 million each in a consortium that will govern the digital coin https://t.co/k6TroXX8Oz

— The Wall Street Journal (@WSJ) June 14, 2019

Facebook hasn’t officially confirmed it would launch GlobalCoin or Libra next week. But the organization did imply it was actively exploring the same. Hinting at the developments, a Facebook spokesperson said, “Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications.”

Incidentally, the Libra Association is rumored to publish a white paper describing the coin and its blockchain-based infrastructure. The association will reportedly release the paper next week. If the rumors pan out to be true, Facebook’s cryptocurrency will become official at the same time. Experts are confident that Facebook would merely announce the existence of its digital currency next week but won’t launch the same. The social media company could formally launch the cryptocurrency in Q1 2020. Still, these are mere speculations at this juncture.

Facebook’s Cryptocurrency Will Be A Parallel Economy?

The cryptocurrency was first envisioned and developed primarily as a completely independent alternative to mainstream monies. In other words, the digital money wouldn’t be associated with real-world currency. Needless to say, this aspect has heavily impacted the reliability and stability of the cryptocurrencies. Digital currencies like BitCoin routinely fluctuate wildly. Interestingly, Facebook’s GlobalCoin or Libra might be the most stable cryptocurrency. Facebook is reportedly in talks with brokers and banks to allow its future cryptocurrency users to exchange their coins for fiat currency. In other words, Facebook’s cryptocurrency will most likely remain strongly associated with or tied to real-world currency.

In our previous report, we had mentioned that Facebook is in active discussion with global money transfer specialist, Western Union. Moreover, the company was also discussing the deployment of its cryptocurrency with the US government and the Treasury. Essentially, Facebook’s digital money could be governed by local laws and would grant its users protection against money laundering. It might not come as a surprise if Facebook’s GlbalCoin eventually equates itself with US Dollars in value and validity.

Facebook’s bitcoin-esque cryptocurrency is expected to be aimed at developing countries where traditional currencies are less stable https://t.co/5CFKQN655c pic.twitter.com/HiLxA0DFA6

— Forbes (@Forbes) June 8, 2019

Understanding the power and efficacy of cryptocurrency, traditional financial institutions have begun to actively explore the possibilities of virtual coins and the blockchain. By getting all the necessary legal approvals, these institutions could tie their virtual currency to fiat currency. This would almost eliminate the scary volatility often strongly associated with cryptocurrencies.

It is important to note that Facebook would surely attempt to expand the use of its cryptocurrency outside the social media universe. Facebook’s GlobalCoin or Libra would allow sending and receiving funds and also permit purchases made on Facebook’s retail partners. It is quite likely that Facebook would offer attractively low processing or transaction charges to quickly gain mass traction.