This post is by jlk from The Barefoot VC

The big news heading out of last week and into the upcoming week is Facebook’s long-awaited GlobalCoin (or Libra Coin), likely to be a stablecoin pegged to a basket of global currencies. Details of its initial consortium leaked late last week – industry website The Block broke the news of members who are contributing $10M each – these include Visa, Mastercard, Coinbase, Spotify, Women’s World Banking, Paypal, eBay, Farfetch, Mercado Libre, PayU, Stripe, Lyft and Uber. While more details will be revealed on June 18th, the listed members are expected to be operating “nodes’ on the network and will earn fees in return for validating transactions. A Facebook subsidiary called Calibra is also expected to run one of the nodes. Given recent regulatory scrutiny, it’s not a surprise that Facebook is building out a consortium to appear as decentralized as possible. A big question yet to be answered is who in the network will see what data, and how that data will ultimately be used. While most of Facebook’s blockchain team members are based in the Bay Area, Facebook incorporated an LLC several months ago in Switzerland to focus on “payments and blockchain”. Switzerland is the original home for Ethereum and has promoted crypto-friendly regulatory frameworks.
As a stablecoin, the coin would be used as a payments rail for its users to transact with each other, and the coin would be convertible via exchange partners (such as Coinbase) to fiat or other cryptocurrencies. Facebook has for many years attempted to (Read more…)