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Visa, MasterCard, Uber To Support Facebook In Blockchain Development

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Facebook has tapped investments from major companies Visa, Mastercard, PayPal and Uber, among others, to support its efforts to build its planned new cryptocurrency, the Wall Street Journal reported.

The social media giant is now in deal with more than a dozen companies for its blockchain project for the digital currency, Libra. These companies will invest around $10 million each in the consortium to fund the development of the coin.

Facebook is scheduled to introduce the cryptocurrency plan next week, with an expected launch of the product next year.

The company plans to include as much as 100 organisations to act as nodes in the Libra network, aiming to limit its control by a single organization.

Earlier, the U.S. Senate Banking Committee had sent an open letter to Facebook CEO Mark Zuckerberg seeking clarification on the purpose and implications of its cryptocurrency and blockchain project.

Facebook for long has been in news for creating its own digital currency, codenamed Project Libra, led by David Marcus, previous head of Facebook Messenger business.

In May, there were reports that Facebook has registered a new financial technology company in Switzerland to focus on blockchain and payments. Libra Networks was registered in Geneva on May 2, with Facebook Global Holdings as its stockholder.

As per the plans submitted on the Swiss register, Libra would provide financial and technology services and develop related hardware and software.

Meanwhile, cryptocurrency analytics firm Diar said that Facebook would face an uphill battle in implementing its cryptocurrency initiative based on the demographics of the platform's user base.

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