Though Facebook imposed bans on all cryptocurrency related ads in 2018, it is a true believer of Crypto. Facebook is not only approving crypto but now joining the blockchain revolution.
After modifying the notorious ban on all crypto ads, Facebook opened job positions on LinkedIn, related to the development of crypto and blockchain technology. With no detailed information disclosed, Q2 Facebook’s spokesman stated that the company, “just as many different companies” is set to explore the advantages of blockchain technology.
The project named Libra is said to be revolving around a stable coin by Facebook, that shall be pegged to a fiat currency. Facebook is expecting to launch Project Libra in Q3 2019.
Project details
The launch will cover a full payment network. Payment processors such as First Data will be supporting the launch.
The aim would be to eliminate the credit card fee for merchants and erase the volatility, as it currently exists with cryptos such as bitcoin and ether.
The coin is also said to be connected with Facebook’s ad engine. It would allow users to earn rewards for watching ads and placing orders from those ads. In simple terms, it is a loyalty program.
What is known for sure is that Facebook is serious about the cryptocurrency project. A clear sign is the fact that working for FB project PayPal’s former president David Marcus left the board at Coinbase, so that any conflict of interests could be avoided.
One of the possible reasons behind the development of FB stable coin, as reported by New York Times in February 2019, is that the social media giant is allegedly planning to create a payment platform based on blockchain, which should bring Facebook-owned WhatsApp and Instagram, under a single platform. This case scenario would potentially bring 2.7 billion users combined, from all three platforms. According to a report published in the Wall Street Journal, Facebook is looking to raise around 1 billion dollars for the stable coin project, seeking investors at Visa and MasterCard.
In conclusion
A social media giant Facebook is choosing a crypto-based payment system, over a traditional payment processors system due to its advantages, because they believe in future behind the technology. And you?
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