Facebook is introducing cryptocurrency payments in the mainstream on Tuesday. The digital currency is used to make purchases on the internet, transfer money and other cash related transactions without the help of a bank. Facebook is setting up a consortium called “Libra”, which is joined by companies like PayPal, Visa, Mastercard and Uber.
The social media giant has also been under tremendous pressure from government regulators because of privacy issues. Most analysts think the crypto project may give the company a big lift in more than one way. The social network founded by Mark Zuckerberg is preparing to launch the cryptocurrency in 2020. The announcement comes as competition with Bitcoin, the world’s most popular cryptocurrency with the highest market capitalisation.
Facebook is yet to publicly recognize its cryptocurrency plans. Its chief executive Mark Zuckerberg hinted at his ambitions at the company’s developer conference in April. “Payments is one of the areas where we have an opportunity to make it a lot easier,” the words by Zuckerberg at the conference. “I believe it should be as easy to send money to someone as it is to send a photo.”
Facebook reveals the details of cryptocurrency and explains the basics of a digital facebook coin. RBC Capital Markets analyst named Mark Mahaney said that ” Facebook’s massive international scale offers an instant network for merchants and customers to transact using a stable token with several advantages that crypto delivers”.
A team of more than 100 Facebook employees directed by Paypal, which joined Facebook five years ago, are working on the digital currency plan. Paypal president was given a task with exploring opportunities in blockchain, which is the technological support for cryptocurrency.
Facebook is also planning to offer fractions of a coin to its users for activities like viewing ads & interacting with content. That means it may reward as per the user activity on the platform. Facebook is going to publicly announce its digital currency news. So Facebook has registered with a new financial technology company in Geneva, Switzerland called “Libra Networks”. This company will offer financial and technology services and develop related hardware and software.
Libra Networks focuses on “payments, identity management, investing, financing, analytics, blockchain, big data and other technologies. Facebook has recruited people to work on cryptocurrency project. Those people must be experts in the field of blockchain technology.
The newly established team is exploring several ways to leverage blockchain technology to improve the lives of people around the world. The ultimate goal of Facebook is to help billions of people with a few things that they don’t have now. Those things may include healthcare, equitable financial services or finding new ways to share or save information.
Recently Facebook has signed with more than a dozen companies like Visa, PayPal, Mastercard and Uber to back the cryptocurrency. The firm had a plan to invest around $10 million each. Like that consortium will govern the digital coin.
With the $1 billion investment, the intent is to create a hamper of multiple international currencies & low-risk securities that serves as an assurance to stabilize the coin’s price. Facebook is contacting e-commerce companies and apps about accepting the coin. It can include minor financial investments from their partners.
Facebook is willing to create a cryptocurrency term, called stable coin. It gives a stable price and prevents complications due to price fluctuations during a transaction.
Facebook has announced Cryptocurrency news as a tough competition to Bitcoin. The stable coin of Facebook Cryptocurrency makes your transactions online without visiting the bank.