This month has been very interesting and revealing in the topic of “Facebook cryptocurrency.” The Zuckerberg’s platform lifted the ban on crypto and blockchain advertisements, and there’s a reason for that – it prepares to introduce their own solution, and it will come to live faster than you might expect.
Perfect cryptocurrency business appliance
From the business point of few, it is a perfect idea. Facebook is perfectly positioned to utilize its structure to get into one of the most profitable businesses: fintech. The billions of accounts can simply get upgraded by a money transferring feature – how disruptive is that?
Actually, this is a perfect example of how you can leverage the new tech opportunities. In the end, it would be so much easier to use Facebook or Messenger to pay someone with one click instead of doing it through an external banking system.
What’s more, Facebook already deals with money through their ads platform. Internal currency can be useful not only for transactions with the advertisers but it can also let the targeted users collect money for watching ads.
Yet, Facebook had a few crises regarding safety and privacy.It might be problematic to convince the people of their funds’ safety. That’s why they need Blockchain technology to ensure the safety of the transactions and cut the costs. The result might be a system that’s efficient and easy to use. It can disrupt the way we make payments on the internet.
Project Libra – Implementing blockchain on Facebook
The new solution is reportedly called Project Libra, and the cryptocurrency itself – “GlobalCoin”.
The plan says that the new payment system will be tested by the end of this year and introduced in a few initial countries by the 1Q of 2020 (BBC). They aren’t shy about those plans, and are very actively probing the markets for opportunities and threats, as they plan to raise $1 billion to fund the project.
We know that Facebook has already:
- discussed the topic with exchanges like Coinbase and Gemini,
- reached out to officials from the US and the Bank of England,
- talked about the plans with top Chicago-based high-frequency trading firms,
- got in touch with a number of payment firms, including Western Union, Visa, and Mastercard,
- payment networks Visa and Mastercard, payments processors such as giant First Data.
Among our team, you could feel a bit of reserve connected with the idea of Facebook cryptocurrency. The platform already knows almost everything about us. Now it will know about money transfers.
What do you think? Would you trust Facebook with your money? Let us know in the comments.