Payments Companies Sign up to Help Manage Facebook’s Expected Crypto Entry

Payments Companies Sign up to Help Manage Facebook’s Expected Crypto Entry

 

At least four payments companies are set to participate in a consortium formed by Facebook Inc. to launch a cryptocurrency next year aimed at commerce rather than exchange trading, according to a report Friday in The Wall Street Journal . Facebook is expected to officially announce the initiative next week.

The consortium, called the Libra Association, will manage what will be called the Libra coin, the Journal reported, quoting sources familiar with the initiative. Mastercard Inc., PayPal Holdings Inc., Stripe Inc. , and Visa Inc. are among more than a dozen companies putting up $10 million each to fund the association, according to the story. One other participant identified by the report is ride-share pioneer Uber Technologies Inc., which relies heavily on mobile payments funded by passengers’ cards on file.

Contacted by Digital Transactions News , a spokesperson for Mastercard said the network would not comment on “speculation.” PayPal, Stripe, and Visa did not immediately respond to requests for comment. Facebook will not comment in advance of its expected announcement. Details remain sketchy, but at least some of the participating companies could serve as so-called nodes on the new network, according to the Journal report. Nodes verify and record transactions. McKee: “While it remains to be seen if this will be more than just a high-profile science project, the consortium members give this initiative immediate [credibility] and potential.” “While it remains to be seen if this will be more than just a high-profile science project, the consortium members give this initiative […]