It was recently reported that Facebook is gearing up to launch its crypto.
The giant social media platform has been preparing for massive moves in the crypto space for a really long time.
A while ago we were reporting that The Wall Street Journal said Facebook has been working on its own cryptocurrency for a global payments network.
And that information has been confirmed by the giant social media and also confirms the rumors that Facebook plans to get involved in the cryptocurrency and blockchain industries.
An announcement coming from Facebook is expected this month.
10 companies will back GlobalCoin
Now, according to the latest reports, Visa, Uber, and PayPal are just three of 10 companies that will be reportedly backing GlobalCoin.
Wall Street Journal reported that each one of the companies would contribute $10 million to the social media’s foray into crypto. The publication cites “people familiar with the matter.”
Major troubles for banks
Bitcoin analyst Andreas Antonopoulos has recently said that the rise of Facebook’s GlobalCoin/Libra could spell trouble for big banks.
The reasoning behind this prediction includes the social networking giant’s massive user base of 2.5 billion monthly active users and its tech experience.
They plan to offer financial services and will definitely become a massive competitor to banks.
Also, it’s been said that the coin could be a danger to BTC and XRP.
Facebook’s project triggered some severe concerns among crypto analysts and various experts who are saying that XRP may be in danger.
They claim that Facebook’s new product will have the ability to displace BTC and XRP.
Mike Novogratz doesn’t believe that Facebook’s coin will be a competitor to BTC.
In his opinion, the GlobalCoin can be used for payments and to legitimize the entire space. On the other hand, he doesn’t believe it will compete with BTC.
