In what seems like a tacit acknowledgement that Facebook understands people might not trust it to be in charge of a new currency, the company is reportedly seeking partners to form a foundation to govern the new cryptocurrency.
In December 2018, Bloombergreported that Facebook had its own cryptocurrency in the works, allegedly for WhatsApp money transfers, a "stablecoin" backed by the United States dollar.
Long believes that Facebook's token will be a "Trojan horse" for Bitcoin, and "will greatly accelerate the pace of teaching people about cryptocurrencies".
What's interesting is that Facebook will pay those employees working on Libra directly in cryptocurrency rather than actual money, if they so desire.
The cryptocurrency is expected to be used by merchants to process transactions on the social network, and TechCrunch also reports that the company might even set up physical devices as ATMs to make it easy for consumers to buy some of its digital currency.
However, there are rumors that the currency will not be called "GlobalCoin", but will now be known as Libra, the code name for the project.
Stability: The currency is also meant to be a token created to have a stable price (stable coin) in order to avoid disparities and fluctuations like we have seen with other cryptocurrencies mostly when they are starting up. Facebook this week revealed plans to announce details on June 18 and confirmed its cryptocurrency would be a "stablecoin" whose value will be tied to a basket of fiat currencies.
Facebook cryptocurrency will become a powerful force in developing countries where Facebook intends to sell the product. Reportedly, Facebook is preparing well by negotiating with financial institutions to help raise $1 billion worth of global flat currencies and securities with low risks that will serve as indemnity for the token's stability.
The team said to be working on this project is being spearheaded by Messenger's VP, David Marcus who also happens to be Paypal's former president.