Facebook to Cede Control of Upcoming Cryptocurrency to Outside Foundation

Facebook (FB) is planning to give control of a cryptocurrency it is developing to an outside foundation, The Information reported Wednesday, citing people briefed on the plan.

The move is reportedly to encourage trust in the forthcoming digital payment system and also to reassure financial regulators.

According to the sources cited, Facebook, in recent months, has approached dozens of financial institutions and other tech companies to be part of an independent foundation that will contribute capital and assist in governing the digital currency.

The digital token, expected to be unveiled later in June, is designed to work as a borderless currency without transaction fees, the sources said, adding that it will be aggressively promoted in developing nations where government-backed currencies are more volatile.

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