As early as last May, social networking giant Facebook indicated plans to issue cryptocurrencies. Facebook has set up a dedicated team to study blockchain technology. The team's leader is Facebook executive David Marcus, who is also a member of the Coinbase board of directors. Marcus was the president of Paypal and has been a supporter of cryptocurrencies. His experience with digital payment companies has helped Facebook to make a big impact in this area.

In April of this year, Zuckerberg also announced the first quarter of the 2020 time slot. However, just after two months, on June 6, Facebook's cryptocurrency project suddenly increased, the launch time will be advanced to July 2019, and it is likely to announce the project's white paper on June 18.

Facebook's entry into the cryptocurrency field will provide its billions of users with a real-world use case and an opportunity to try to use cryptocurrencies, which is likely to greatly increase interest and investment in a variety of cryptocurrencies, including bitcoin. Facebook's interest in bitcoin and cryptocurrencies has excited many people in this emerging industry. A venture capitalist said the recently disclosed information "ignited the enthusiasm of all major financial institutions and investors."

So far, stable currencies have been linked to a single national currency, such as the US dollar. Facebook seems to be planning a different approach. According to public information, the internal code of the Facebook cryptocurrency item is “Libra (Libra)”, and the cryptocurrency that will be issued is likely to be called “GlobalCoin”. Facebook's cryptocurrency project uses a blockchain-used management structure and has recently established an independent foundation in Switzerland. It acts like a “central bank” throughout the system and will be responsible for governing and controlling the entire Facebook digital finance in the future. system. Facebook's GlobalCoin is not a single anchor dollar, but will anchor a basket of currencies including the dollar, euro, and yen.

According to previous media reports, Facebook has invested $1 billion with financial institutions to negotiate a basket of currencies consisting of various international legal tenders and low-risk securities, which will be used as collateral to stabilize the price of its tokens. Facebook is working with a number of countries to pre-approve the launch of stable currency. ”

Facebook wants to launch a network of 100 nodes, each with $10 million x 100 nodes = $1 billion for the Libra project. Facebook plans to license companies to operate nodes on their new cryptocurrency network, charging each company $10 million in royalties. The node operator will also be allowed to send a representative to the independent foundation. Facebook hopes to launch a network with 100 nodes, generating a $1 billion license fee. The company then plans to use these fees to support its cryptocurrency in a basket of currencies and low-risk securities from different countries. ”

Libra's debut may open a new era of social networking business and payment. It can be used to provide low-cost or free payments between friends, and it can also be used by overseas migrant workers who are often fraudulently remitted by remittance services to send money to their families. Bypassing credit card transaction fees, Facebook's cryptocurrency can also provide cheaper payment methods for merchants of traditional e-commerce, or micro-transaction convenience for on-demand news articles and tips for content creators. A better understanding of who bought what and which brands or products are popular can help Facebook gain an edge in ad measurement, ranking and expanding its core business goals.

According to media reports, Facebook's cryptocurrency will be freely transferred through Facebook products including Messenger and WhatsApp. Facebook is working with merchants to accept vouchers as a payment method and may offer a registration bonus. At the same time, Facebook also hopes to introduce physical devices for the ATM, so that users can exchange this cryptocurrency with traditional assets. ”

The company is likely to release a related white paper on June 18, and Facebook is finally ready to announce the details of the cryptocurrency codenamed Libra. According to one source, the white paper will explain the basic principles of its cryptocurrency. Facebook has briefed a number of investors on the project.

This project is likely to generate a chain reaction of investment and use in the entire cryptocurrency field. The launch of Facebook currency is likely to change the status quo in the cryptocurrency field in many aspects, especially considering the huge subversion of Facebook's billions of users and cryptocurrency. Sexual union. As Mark Zuckerberg said recently, integration with Instagram, Messenger and WhatsApp should make payments as easy as sending photos. At present, Facebook's three major social products, WhatsApp, Facebook Messenger and Instagram, have a total of approximately 2.7 billion users, and their users are almost all over the world.

Facebook's 2.7 billion potential users cover almost one-third of the world's population, which is indeed very attractive and influential. If all goes well, the cryptocurrency finally ushers in the largest landing application ever, and these massive users will bring unimaginable positive changes to the entire industry.

We can imagine that cryptocurrency (especially bitcoin) may be affected by this event. Once a small percentage of Facebook's billions of users have mastered the trick of cryptocurrency payments, it is likely to generate a chain reaction of investment and use across the cryptocurrency sector. Due to the inherent advantages of Bitcoin, the first choice for most people is usually bitcoin. So many people think that the most direct beneficiary of the cryptocurrency issued by Facebook may be bitcoin. What do you think of it? Welcome to leave a message.