Visa and Mastercard join forces: 26 partner companies revealed for Facebook's payment platform GlobalCoin
Facebook has been working on launching its stablecoin payment platform "GlobalCoin" for over a year. Through integration with its Messenger, Instagram, and WhatsApp platforms, users will be able to initiate transfers and payments to contacts on their phones, similar to PayPal.
Table of Contents
The Facebook cryptocurrency project began around 2018. The company's "Blockchain Team," led by Facebook Messenger head David Marcus, introduced former Coinbase board member David Marcus and former PayPal president Tomer Brell.
Partnerships with Major Payment Institutions
According to reports, Facebook has signed contracts with over a dozen companies including Visa, Mastercard, PayPal, and Uber, who will support Facebook's new cryptocurrency set to debut on June 18. Additionally, online payment service provider Stripe, travel commerce company Booking.com, and payment service provider MercadoLibre are also participants in the project.
Although the report does not specify their roles, the full list has been disclosed by The Block. The list shows 26 partner institutions spanning blockchain, investment firms, non-profit organizations, sharing, payments, e-commerce, social media, and telecommunications sectors.
As part of the "GlobalCoin" project, each partner enterprise will invest approximately $10 million in the project. Facebook has not revealed many details about the project to the public, and even participating members are not entirely clear on how "GlobalCoin" will operate. Previous reports indicated that some members may act as "nodes" in the system to verify transactions and maintain transaction records, creating a new payment network.
Expectations for GlobalCoin
Bitcoin has been operational for ten years, but consumers have hardly used it or other cryptocurrencies for payments. Facebook believes it can change this situation by building a payment system around its vast social network and billions of users.
Blockchain advocate and Wall Street veteran Caitlin Long shared her vision for Facebook's cryptocurrency in a Forbes commentary:
Facebook's cryptocurrency will be a powerful force for the benefit of developing countries, as Facebook's stablecoin will force financial institutions to improve currency discipline by providing a more reliable store of value than central banks.
Charlie Shrem, a founding member of the Bitcoin Foundation, sees "GlobalCoin" as a direct threat to Ripple (XRP):
Facebook is launching their global crypto coin called “Libra”. What’s interesting is they are offering companies to pay $10m to become “validators”. If anything, it renders Ripple useless 😂. The first companies to create a LIBRA/BITCOIN exchange will make a killing!
— Charlie Shrem (@CharlieShrem) June 8, 2019
It is understood that negotiations are still ongoing between Facebook and some partners, and the final participating members of the team may still change.
- Facebook Stablecoin Launched? Supports Mobile Transfers and Remittances
- Facebook or Telegram's Cryptocurrency Could Succeed
Join now to get the most comprehensive information on financial technology, blockchain updates, and industry examples!