A recent Reuters article reveals that Facebook Global Holdings has registered a new Financial Technology company in Switzerland. As per Geneva’s commercial register, the company named Libra Networks was registered on May 2nd.
The company will focus on “investing, payments, financing, identity management, analytics, big data, blockchain, and other technologies,” and aims to “provide financial and technology services and develop related hardware and software.
Wall Street Journal reported previously that Facebook is building a cryptocurrency-based payments system called Libra (for 1 year now), which will be used on their platforms. For the same, it had been recruiting dozens of financial firms and online merchants.
Reacting to this report, on May 9, 2019, the U.S. Senate Banking Committee sent an open letter to Founder Mark Zuckerberg. Keeping the U.S regulation scenario in mind, it makes sense for Facebook to move its subsidiary to a more crypto friendly country.
As per AMB Crypto, the project is likely to be released in the second quarter of 2019. Seemingly, the users would be able to spend the coin on the website or on Whatsapp as a method of payment. Facebook is also looking to back up its crypto coin with the Dollar reserve.
The social media giant, with around 2.4 Billion monthly active users and with current evaluation at $529 Billion, is in talks with all major payment networks like Visa, Master Card and more and is looking to raise around $1 Billion for the project.