For a while now, there were rumors that various large companies are planning on following JP Morgan with developing their own coin, with Facebook being one of them. In fact, Facebook is likely the most talked-about company that was reportedly planning to enter cryptocurrencies.
There were multiple sources from within the company, confirming such rumors and sometimes adding minor details. Now, however, another report from within had arrived, claiming that Facebook is negotiating with ‘dozens’ of financial groups regarding its crypto project. Not only that, but it also appears to have named it ‘Project Libra.’
According to the report by the Wall Street Journal, Facebook seems to view the project as a way to remain relevant in its users’ lives. The newly-developed cryptocurrency will be useful in and out of Facebook, similarly to how users can use the Facebook login option to access various other websites and have automatically created accounts on them. In addition, it appears that the project will also have a connection to ads.
One suggestion of how it might look like sees users clicking ads in order to make a purchase of offered products, which can be paid for via Facebook tokens. A similar concept was already used with fiat currencies on Instagram back in March. Since Instagram is already owned by Facebook, this may have been a way to test the concept prior to the arrival of Facebook’s crypto.
Facebook’s involvement with blockchain and crypto is not new
New reports from sources familiar with the matter claim that Facebook has already met with the likes of Mastercard, Visa, and multiple other top financial companies. The reports also claim that Facebook hopes to receive a $1 billion-large investment which would cover the coin’s value and protect it from volatility. In other words, this will be another stablecoin. For now, the company’s spokesperson only stated that the company is looking for ways to use blockchain technology, just like many others out there.
Such statements are not new, and Facebook’s spokesperson already said the same several times before, indicating that the company currently has no plans to confirm or deny the rumors. All they were willing to reveal is that their team tasked with exploring the blockchain and its potential applications remains active and that there is currently no new information to share.
In December 2018, many have started reporting that Facebook is developing its own coin which is to be used on WhatsApp for sending international payments quickly to friends, family, and other contacts. Then, a few months later, a new wave of reports stated that Facebook is meeting up with cryptocurrency exchanges to discuss potential plans for the coin.
However, the reports of Facebook exploring blockchain technology are about a year old at this point. They first started coming in May 2018, claiming that Facebook has a freshly-assembled blockchain division. At the time, the company was moving a number of its executives between projects, some of which were tasked with researching the blockchain tech. One such executive was David Marcus, the previous leader of the Messenger team.
Even before that, in January 2018 — Facebook’s CEO, Mark Zuckerberg, published a post stating that the company plans to explore cryptocurrency and encryption further and learn more of these technologies. He believed that they can be very useful and that they might enhance Facebook’s service. Only one week after that, Facebook banned all ads that are related to financial services and products, supposedly out of fear that they might trick its users by using ‘deceptive promotional practices,’ including cryptocurrencies.
And, considering the issues that Facebook has had since then, some in the crypto community are wondering whether it would be a good idea to even use the coin — or Facebook — anymore.
Is anyone gonna trust a stablecoin from Facebook? More importantly who the hell still uses Facebook #projectlibra
— Ant (@nanodealer) May 3, 2019