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David Marcus, the head of Facebook's cryptocurrency project. Photo by Bloomberg

Facebook Plans Outside Foundation to Govern Cryptocurrency

By and  |  June 5, 2019 11:57 AM PDT
Photo: David Marcus, the head of Facebook's cryptocurrency project. Photo by Bloomberg

Facebook plans to cede control of its forthcoming cryptocurrency to outside backers, a move meant to encourage trust in the digital payment system and reassure financial regulators, The Information has learned.

In recent months, the social network has courted dozens of financial institutions and other tech companies to join an independent foundation that will contribute capital and help govern the digital currency, according to people briefed on the plan. The digital token, which Facebook is expected to unveil later this month, is designed to function as a borderless currency without transaction fees and will be aggressively marketed in developing nations where government-backed currencies are more volatile, the people said.

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