Facebook is surely at the forefront of cryptocurrencies and blockchain, it appears. After the company began a hiring spree back in 2018, the idea of creating a FaceCoin or a specific blockchain network was on. Here is what Leaprate reported back then:
According to CCN, Facebook is probably exploring options for providing blockchain-based payment methods for its 2-billion user base. While there are no specific details as of right now, the blockchain team has been working on a strategy on how to implement such a solution. In addition, Facebook may be exploring creating its own digital coin, so that users do not have to use traditional banking services to make FB-related transactions.
Now, according to a report from The Wall Street Journal, Facebook is finally making its way in the blockchain space with a payment network, a project called Libra.
According to CryptoInsider, Project Libra will consist of, at its core, of a stablecoin pegged to a fiat currency. Facebook has probably chosen a stablecoin, as reported by the Wall Street Journal, to avoid the volatility of regular alt coins.
In order to back the proposed stablecoin, Facebook is reportedly trying to raise $1 billion in collateral from different e-commerce companies. For this project, Facebook is again, reportedly, going to partner with tech and fintech giants such as MasterCard, Visa and First Data.
The digital money will be used on the messaging platform of Facebook, WhatsApp. In addition, the digital coins can be used in the following way, as reported by CoinGape:
The company is also working on a virtual checkout that consumers could use to make purchases on other websites, similarly to how people can use their Facebook credentials to log in to other sites. It’s also considering paying users fractions of a coin to watch ads, engage with other content, or shop on its platform, the report added.