This may be the most amazing connection Facebook is executing since it was founded many years ago. The company is uniting amalgam of entities, from telecoms, financial services, to ecommerce firms, as it unveils a cryptocurrency dubbed Libra.
Yes, the Facebook’s cryptocurrency has Visa, Mastercard, Paypal, Uber and a host of other companies on board. Each of these entities will put $10 million into a consortium to govern the virtual coin. Simply, Nigeria is in because Visa and MasterCard are already linked in our financial systems.
Facebook Inc. has signed up more than a dozen companies including Visa Inc., Mastercard Inc., PayPal Holdings Inc. and Uber Technologies Inc. to back a new cryptocurrency it plans to unveil next week and launch next year.
The financial and e-commerce companies, venture capitalists and telecommunications firms will invest around $10 million each in a consortium that will govern the digital coin, called Libra, according to people familiar with the matter. The money would be used to fund the creation of the coin.
Facebook takes it – yes that NairaCoin, stable and in compliance, is off the table. Yes, we all mulled the idea but it seems it takes a man with a planet-level population to tie crypto to national currencies and take it mainstream.
We need NairaCoin as I have noted many times. Yes, simply create a Nigerian cryptocurrency backed by the Central Bank of Nigeria so that Nigeria has its cryptocurrency (NairaCoin) which is tied to the Naira. That will make blockchain contracts more efficient. The NairaCoin will maintain exchange rates with Bitcoin and others, just as paper Naira has with U.S. Dollars and Euro, while making sure that the paper Naira and NairaCoin are always correlated. The impact could be huge and the adoption would redesign industrial sectors since the banking fees will disappear for customers. NairaCoin would not be mined; it would be earned just as the paper Naira. Workers could select to be paid in the digitized Naira. Government can pay youth who are supporting farmers in different extension services via NairaCoin.
In May 2019, “Facebook registered Libra Networks LLC in Geneva, Switzerland, where it is working on blockchain developments, according to its register. BBC later reported that the company is looking towards a …launch of the coin, and has plans to begin testing it later this year before launching in a “dozen” countries”, the Block reports. The following are members of the Libra association.