The stablecoin project Facebook is working on seems to be getting more attention than thought even though the social media giant is still far from launching the coin.
While series of report yesterday claimed that the tech giant is seeking a billion dollars investment fund for its forthcoming stablecoin project, a new report today affirmed that venture capitalist Tim Draper is making plans on meeting Facebook Inc. to investment in the project.
Bloomberg recounted that Draper has interest in the social network’s cryptocurrency project.
“I am interested to hear the story. We will see if it is a fit,” Draper said to Bloomberg News in a mail.
Aside the sexagenarian capitalist Draper, other venture investors and Hedge funds, as well as wealthy individuals also have shown interest in the project, and they will like pour in their fund.
The New York Times on Monday revealed that Facebook is aiming “big sums – as much as $1b” from investors to support its stablecoin project.
A reporter of The New York Times, while disclosing update on the project, also said Facebook would be using the investments as collateral for the stablecoin.
One person I spoke with said that Facebook is talking about using the money as collateral for its cryptocurrency. Facebook has been designing the coin to keep a stable value, pegged to a basket of foreign currencies held in bank accounts.
— Nathaniel Popper (@nathanielpopper) April 8, 2019
After addressing the situation of investment request from outside to support the stablecoin project, observers opined that it as an attempt to display a “more decentralized and less controlled” system since the company is superabundant than being short of cash.
It was revealed in December that Facebook is developing a stablecoin, whose valued will be pegged to the US dollar, for transfer of fund on WhatsApp messaging app, with an initial focus on remittances in India.
Tim Draper continues to show its belief in cryptocurrency. Lately, Draper averred that crypto will undoubtedly replace all fiat currency in the finance industry.
Also, Today’s Gazette reported the bullish stand of the venture capitalist on Bitcoin, where he said the crypto asset trailblazer will surge by 4900% by 2020.