Facebook’s Project Libra
The Wall Street Journal, on May 2nd 2019, disclosed that Facebook is secretly working on a cryptocurrency-based payment system. The WSJ also published that the social media behemoth is talking with several financial firms and e-commerce companies to help build this project. Since the beginning of this year, Facebook has accelerated its development stages for its cryptocurrency platform. However, the company has yet to be vocal about it in the public eye.
This payment system is being dubbed as “Project Libra” internally at the company. Reports suggest that Facebook is currently speaking with Visa and MasterCard as payment processing providers for the platform. The Facebook crypto coin is suspected to be a StableCoin connected to the U.S. Dollar. Project Libra will be released across all messaging applications owned by Facebook (Messenger & WhatsApp)
New reports suggest that Facebook wants to expand its footprint in the crypto space and enable its payment service to their-party websites or applications. This is why Project Libra is being built with a two-prong approach; it will help to assist online merchants. Another idea proposed for Project Libra that will help online merchants is giving messenger or WhatsApp users with a small fraction of a StableCoin by looking over a series of advertisements. This is a concept currently used by Brave Browser.
Allegedly Facebook is seeking an investment of $1 billion from partners towards Project Libra. This information comes from source CoinSpeaker. If true, this would confirm the accelerated schedule for development.
Mark Zuckerberg on thin ice
The biggest problem facing Facebook right now is privacy as in the last year, the social media company have been a part of some massive scandals regarding privacy and data breaches. Shareholders in Facebook asked Zuckerberg to step down as the CEO. However, due to high-level management requesting that Mark remains at the company with his position, he currently resides as the CEO of Facebook. He is working night and day to guarantee his users safety.
Stepping into the crypto space, a space that has been known for security breaches is a major challenge for Facebook. Crypto continually faces market manipulation, data breaches and theft. The strategy Facebook uses for security with Project Libra will make or break if this upcoming service will be a success.
Mark Zuckerberg continually has been stressing the matter of privacy to the media during the last six months. During an interview at the F8 Conference, he spoke about how the blockchain industry is the future for his company and that bringing Project Libra to several messaging services will allow for the company to focus more on advertising.
Barclays, one of Europe’s biggest banks, believes that Facebook’s StableCoin will be able to create an additional $19 billion in revenue for this social media company.