Could PayPal, Uber, Visa and Mastercard Back Facebook’s New Digital Currency?

According to a recent report, Visa, Mastercard, PayPal and Uber are backing the new stablecoin that is being developed by Facebook. According to CoinDesk, The Wall Street Journal reported that Facebook has already several backers for its crypto-related project.

Facebook’s GlobalCoin Receives Support From Companies

As per the report released by The Wall Street Journal, there are several companies that have signed their support for the GlobalCoin cryptocurrency. There are different companies that have backed Facebook’s initiative to launch its stablecoin.

In order to do so, the backers will be investing $10 million in the project as part of a governing consortium of the currency. This is going to help the stablecoin gather funds to be backed. Some of the firm backing this initiative include the Buenos Aires-based MercadoLibre, Booking.com, Visa, Mastercard, PayPal and Uber, among others.

The digital currency has been developed by Facebook during a long period of time but without informing anything to the crypto community.

As suggested by BBC, Facebook may look to retailers in order to revolutionise the way payments are processed around the world. Users may have the possibility to make simple purchases of goods and services in a fast and easy way, something that could affect banks, financial institutions and other digital currencies as well.

At the moment, it might be only possible to use this digital currency on top of WhatsApp, Messenger and Instagram. There are several countries with high rates of inflation and unbanked citizens that would have an incentive to move towards the digital currency.

Users will have the chance to purchase discounted goods using the digital currency. This is going to have a positive effect in many different countries. At the same time, this digital currency is expected to help retailers profits since there are going to be more interested users in spending their digital currency.

There were some comments that claimed that the digital currency launched by Facebook could harm Bitcoin. Peter Schiff is one of them. He said that on Twitter a short time ago. Meanwhile, other recognized figures such as Anthony Pompliano have answered back saying that this virtual currency is going to be helping Bitcoin rather than harming it.

Users are now waiting for June 18, the date in which the virtual currency could officially be launched to the market.

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Originally posted on: https://usethebitcoin.com/could-paypal-uber-visa-and-mastercard-back-facebooks-new-digital-currency/