Altcoin News: Facebook Plans to Raise $1 Billion to Create Its Own Stablecoin

April 9, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The world’s largest social network Facebook is going to attract third-party funding in the amount of $1 billion to develop its own cryptocurrency.

NY Times reporter Nathaniel Popper, referring to his own sources, published a series of notes on the social network Twitter. According to him, such a significant amount of funding will be required by Facebook in order to provide stablecoin with real money. In addition, attracting third-party investments will allow the community to present a more decentralized project.

Interestingly, at least $10 billion of free funds is stored on Facebook accounts, so financing a project with venture capital companies is hardly associated with a lack of money from the social network. At the same time, sources say that Facebook will be tied not to a specific fiat currency, but to a whole basket of currencies, which will further reduce the volatility of the coin.

Recall that the Facebook audience has about 2.3 billion users, and the capitalization of the largest social network is twice the capitalization of the entire cryptocurrency market and is at around $500 billion.

According to CEO of the Circle platform, Jeremy Allaire, the emergence of Facebook Coin should play into the hands of the entire industry. Interestingly, the Russian social network VKontakte is also considering the possibility of launching its own cryptocurrency.

Author: Marko Vidrih