Facebook is seeking an investment of $1 Billion for it's rumoured "FB Coin" according to a new report in WSJ. It's supposed to be a cryptocurrency stablecoin that the silicon valley giant has been working on for a while now.
It seems to be trying to have a cryptocurrency pegged to the US dollar which Facebook and WhatsApp users will be able ot use to make payments and transfer to each other.
The social media company used by more than 2 billion users worldwide has been talking to Visa and Mastercard amongst various other companies about the project which is known within Facebook as 'Project Libra.'
According to WSJ, "Facebook Inc. is recruiting dozens of financial firms and online merchants to help launch a cryptocurrency-based payments system on the back of its gigantic social network."
It may also consider paying users in it's digital token for viewing ads on its platform as well as have advertisers pay for ads using their in-house cryptocurrency.
The use cases for Facebook to develop it's own crypto are many and it would interesting to see how they pull this off.
The report also adds that Facebook might also look at taking the lions share of the tradition card swipe and card processing fees which are 2-3 percent. This is usually paid by the merchants to the banks and the intermediaries such as the payment processors and networks involved in a transaction.
It should come as a surprise that Facebook is going to try to reduce the dominance of card networks in the global payments sector.
I'm not the biggest fan of centralised cryptos but considering how unfavourable some markets are towards digital tokens I want large companies like Facebook to adopt cryptocurrencies and force protectionist governments like India to agree to adopt these changing technologies.
But a Facebook stable coin pegged to the US Dollar, backed by 1 billion USD collateral sounds good on paper. I'm not sure how this will pan out. We're gonna have to wait and watch I guess. But maybe it will help reduce any volatility. However, we've all seen how stable these so called stablecoin cryptos really are, haven't we? Maybe this will be different.
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Yeah, the sheep can have their FB Coin. I left that garbage platform for a reason, and another "stable" coin. Yeah, we see how stable Tether is, much less the USD as a whole. I am a US citizen and think the dollar is garbage too, so yeah, I will be avoiding this one for sure.
It's pegged to the dollar, so there's not going to be a pump. Garbage. I don't think I'll be touching it.
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me too not. Facebook just want to be a bank, thats the target. Nothing else. We give facebook with that coin more power. So i will not use this
A useless coin from my point of view but will be interesting to follow the evolution.
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FB Coin will get hacked. Centralization comes at a cost.
Heya @firepower If there will be a fb coin there will a great revolution as most of the people are on fb and whatsapp and this habit will make people use this..... let's see what will gona happen but my best wishes are always with steem coin =)
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It's good to know that Facebook is exploring cryptocurrency but they will keep it centralised which may not be that much beneficial. But still watching it will be fun.
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As you have said, we have seen how unstable it could be and we look forward to seeing how they will pull this off. The good side of it is that it would force government hands to accept the advent of cryptocurrencies. It would be a move that would force their hands, obviously. It might take Facebook a long time to bring this to work though.
i think it's not going to work....
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Facebook have anough money to do it itself. Why they looking for fools who give they money for the projekt.... sorry, but only fools will use the facebook coins and they coming "decentreliced " apps and money.
Good for us! Makes the crypto scene more interesting!
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Hearing this blows my mind. Especially when there are still people ignoring and not believing the power of blockchain. And everything that it will change.
The positive out of this is that there will be a lot more awareness and adoption of cryptos. One more step to go mainstream.
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