For quite some time now, there were rumors that Facebook might soon enter the crypto world. There were numerous supposed insider reports, theories, speculations, and educated guesses — but no official announcements or any real proof, until now.
Now, the social media giant launched a new fintech startup based in Switzerland. The so-called ‘Libra Networks’ appears to be a startup which will support Facebook’s cryptocurrency payments plan, which is also, reportedly, in development.
Facebook sets Libra Networks in #Geneva #Switzerland. #facebook #stablecoin backed by governmental currency and powered by #blockchain technologies. #Libranetworks is expected to offer a full payments network partnering with #cred…https://t.co/rs1gHUvnR1 https://t.co/Vqjc1eQs5U
— Paul Wang (@paulwanggva) May 17, 2019
As usual, Facebook remains very tight-lipped regarding the project, and not much is known publicly, even now. However, according to the Swiss commercial register, Facebook is, in fact, a stakeholder in the new company which is expected to create financial and tech services, as well as provide related software and infrastructure.
Libra Networks is believed to be the next step in Facebook so-called ‘Project Libra,’ which is the original initiative that is supposed to grant Facebook access to the crypto world. It includes the social network’s own coin, which is reportedly a stablecoin. It would be pegged to numerous foreign currencies, instead of only having a connection to the USD, like many other popular stablecoins today.
It was also said that the coin would be integrated with WhatsApp, which users could use to send funds to each other, no matter where they are in the world.
As mentioned, Facebook has been extremely secretive regarding the project ever since it started it. So much so, in fact, that even the US Senators had to ask the company’s CEO, Mark Zuckerberg, to explain the project and provide additional information.
Facebook Coin might first surface in Asia
Even so, confirmed information remains scarce, and most of the information is nothing but rumors. Still, rumors of Facebook being involved with crypto have been going on for over a year, at this point. Also, it would make sense for Facebook to delve deeper into the financial industry, and potentially deliver entirely new revenue streams.
Some reports claim that over 50 engineers are working on Facebook’s new cryptocurrency, as well as methods of adding it to WhatsApp. Further, Facebook is also expanding its blockchain team, judging by the number of new hires that were recently made. As mentioned, there were multiple insider reports, allegedly provided by those familiar with the projects. The reports claim that Facebook is currently attempting to connect its messaging apps with Instagram and make its future cryptocurrency universally available to all of its users.
There were also reports claiming that the new coin might see its initial launch in Asia, most likely India, where WhatsApp is used by 200 million of its 1.3 billion people. Another indication that Facebook is getting more acquainted with crypto is the recent decision to ease crypto-related advertising restrictions, which used to require pre-approval to simply deliver ads regarding blockchain, crypto, and industry news.