According to a report published by the Wall Street Journal, Facebook’s much-awaited Stablecoin will focus on brand new payments network. The blockchain initiative called Project Libra will internally implicate a Stablecoin which will be backed by government currency. The report can be read from the Wall Street Journal.
From the beginning of 2019, Facebook has started working towards its crypto plans silently, even though Facebook hasn’t voiced about its plans. It has been heard from different industry sources that it is described as Project Libra. The recent report suggests that talks have already begun by Facebook with payment processing giants – Mastercard and Visa. Moreover, the Facebook coin is more likely to be Stablecoin backed by the US dollar and strengthened by the blockchain technology.
A recent tweet by Frank Chapparo on 2nd May describes Project Libra:
JUST IN! Project Libra: Facebook to launch stablecoin-based payments networkhttps://t.co/e4ayx5SZR4
— Frank Chaparro (@fintechfrank) May 2, 2019
Recently, Facebook CEO Mark Zuckerberg gave a hint that Facebook is planning to take further risks by “double-down” its plans towards online payment systems and E-commerce. Also, a report published by the Wall Street Journal hinted that Facebook is secretly working on its cryptocurrency based payment network. Moreover, Facebook CEO is allegedly in talks with e-commerce companies and financial giants about this project.
Last February, the New York Times reported that a digital coin was being developed by Facebook to allow WhatsApp users to transfer money.
Later, as per the March 2019 report, the news came out that Facebook has plans to launch its cryptocurrency across its suite of messaging applications. But now, it looks like the company has plans to expand its crypto footprint to more apps and e-commerce companies. It does look like Facebook is more likely to implant its payments to third party websites and applications. Moreover, Facebook is allegedly using a twofold attitude when approaching online merchants. It recommends its merchants to join them as network partner and persuades them to invest in the crypto platform of Facebook.
There was this proposed idea that Facebook would be rewarding its users with a fragment of its cryptocurrency for having a look at the advertisements on its platform. The similar concept was adopted by Brave browser for its Basic Attention Token as a promotion.
Facebook currently hosted more than 1 million active users. The massive boost for Project Libra will be undoubtedly provided by Facebook users who are massive in size. Moreover, Facebook is also considering how it might combine its Stablecoin into platforms advertising architecture. Succinctly put, Instagram and Facebook users will be able to use Stablecoin to purchase a product from its advertisers, where it can use Stablecoin to pay for advertising, which in turn drive further purchases.
Also, Facebook has plans to reward its users for their activity on its platform. For viewing ads, making purchases or interacting with content, the users will be paid in a minimal amount which is similar to loyalty reward points. Also, users will be able to use Stablecoin outside the Facebook ecosystem. To attain this, Facebook is building a custom checkout option like how other websites allow their users to select a payment option easily.