The news that Facebook is interested in exploring blockchain technology and launching its own cryptocurrency is no longer a speculation. This news was shared earlier in the year and today’s reports corroborate the same.
However, Facebook hasn’t officially confirmed the rumour. But we can gather bits and confidently announce that the Facebook coin will be a reality in the future. Here are a few pointers that lead us to the conclusion;
The fact that Facebook is coming out guns blazing hunting for top crypto experts. Some of the senior engineers, academics and legal experts on matters crypto and even former PayPal executives have joined Facebook in the last couple of months.
Facebook is also reported to have struck deals with top financial service companies like MasterCard and Visa before the launch of its new cryptocurrency.
These reports have also been confirmed by multiple independent sources who have corroborated on the story. The same sources have also shed light on Facebook’s secret codename, the ‘Project Libra’ initiative. The project is reported to be on development for at least a year now.
Facebook In Negotiation
A new report by WSJ says that Visa and MasterCard are the latest payment service giants to join talks with Facebook. The two payment services control a significant chunk in the payment industry. If they join Facebook in their digital payment ventures, then the project could surely become a force to reckon with.
Facebook is also believed to be in negotiations with a few e-commerce apps and firms on the possibilities of the Facebook coin being listed on their stores.
By pegging the coin against the dollar, Facebook intends to stabilize its homegrown cryptocurrency’s value. It’s to render the currency immune to the volatility experienced by the regular coins like Bitcoin and the likes.
Addressing Privacy Concerns
The social media giant is currently in a fight of its life after being caught pants down in multiple privacy scandals. An introduction of a Facebook stable coin would be more convenient in a time like this when the company’s PR department is fighting an uphill battle. The effect of the stable coin introduction is a useful damage control tool and would win back user confidence in the company.
Cryptocurrencies offer security and anonymity to a larger extent. It has prompted the company to explore new avenues for Facebook revenue in the new asset class.
The WSJ report also conveyed that plans are underway by Facebook to roll out a virtual checkout option for users. If this is true, then it will enable users to shop at third-party sites.
Another use of the coin by Facebook according to the WSJ report will be to incentivize users to watch adverts engage on particular contents and shop on the platform.
Blockchain Has A Bigger Role To Play In FB; Zuckerberg
The merger of Facebook and blockchain has unlimited potentials. And Facebook has recognized the untapped potential in the consolidation. The company is on record praising blockchain and admitting that it is keen to leverage blockchain potential for the improvement of critical social network feats.
Mark Zuckerberg himself has admitted publicly that he is open to the idea of blockchain for Facebook logins storage. He also added that blockchain on Facebooks lends users more control while sharing third-party apps and data.
Speaking in an interview with Harvard Law Professor, Jonathan Zittrain, the billionaire asserted that decentralized authentication sound right to him, except that he hasn’t figured out the way.