The Wall Street Journal reported that Facebook had been secretly working on a project name “Libra”, for almost a year. The article suggested that this program is a cryptocurrency-based payments system.
Facebook has plans to introduce a digital currency which its 1.5 billion users can spend on Facebook and other websites. Facebook has already teamed up with a “dozens of financial firms and online merchants” and raised about $1 billion I investment and have already enlisted partners to help launch their cryptocurrency.
The Journal further suggested that Facebook has cited Visa, Mastercard, and the payment processor First Data. To further increase the use of its currency, Facebook has approached many e-commerce companies and app, to accept their coin and invest in their project as well. They have lured these companies with the opportunity of zero card-processing fees.
The report further added that to make its coin more stable and less volatile than the existing cryptocurrency such as bitcoin Facebook is aiming to reserve some dollars. This might be a game changer as a “stablecoin”, of cryptocurrency offer security and anonymity to its users. This might be a response to accusation regarding the privacy and safety of Facebook users. However, at the end of the day, this is a risk as cryptocurrency have misplaced, misused, and stolen several times before.
The company is also making a virtual checkout so that its user can make purchases on other websites. This might resemble using Facebook credentials on other sites. Facebook also plans on giving user fractions of coins by making them watch ads, engage with other content like using their coins to shop on other platforms.