Facebook officially forms Libra Association

In June 2019, Facebook unveiled a new global cryptocurrency – Libra – set to go public in 2020. When it was first introduced, Libra was made up of 28 founding members — including names like Mastercard, PayPal, Xapo Holdings Limited, Uber Technologies, Spotify AB and Visa.

Each of these founding members paid around $10 million to become a part of the Libra Association, claim dividends on earned interest in proportion to their investment and have a single vote in the Libra Association council.

Over the last five months, several original members pulled out of the project –  including Visa, Mastercard, Stripe, eBay and PayPal. But on Monday, 14 October 2019 – the remaining founding members officially formed the Libra Association – the governing body that will control the new global cryptocurrency.

Image sourced from Bitcoin.com

“Today marks an important step in our journey,” says Calibra in an official statement. “It is time for a change and we are committed to seeing this through.”

Libra is Facebook’s chance to disrupt the current world financial system — and according to the whitepaper, their mission is to “enable a simple global currency and financial infrastructure that empowers billions of people” with fast, cheap and secure transactions, worldwide.

Thanks to the association, Libra will be able to make use of a permissioned structure where, essentially, a network of validator nodes owned by members of the Libra association approve or reject a transaction. This means that all members – not solely Facebook, despite being the driving force behind the project – will have authority over the coin.

Edited by Jenna Cook

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