Facebook is in negotiations with cryptocurrency exchanges with the aim of launching its new cryptocurrency coin as early as the first half of the year, The New York Times reported on Thursday, February 28.
According to one of the world’s most trusted newspapers, The New York Times, five Facebook employees, who have been working on the secretly kept cryptocurrency project, said that the new Facebook coin will most likely be pegged to the value of traditional currencies.
“Facebook is looking at pegging the value of its coin to a basket of different foreign currencies, rather than just the dollar, three people briefed on the plans said. Facebook could guarantee the value of the coin by backing every coin with a set number of dollars, euros and other national currencies held in Facebook bank accounts,” the newspaper writes.
The New York Times also noted that the project details are being kept strictly under wraps.
“Facebook has been coy about what it is building. The team is in an office with separate key-card access so other Facebook employees cannot get in, according to two Facebook employees,” Nathaniel Popper and Mike Isaac of The New York Times write.
Launching a new cryptocurrency, or, more likely a stablecoin, dubbed Facebook coin, would allow social media netowrk to take advantage of blockchain technology and decentralize its payment infrastructure.
“Facebook is looking at several ways to use the blockchain, the technology introduced by Bitcoin that makes it possible to keep shared records of financial transactions on several computers, rather than relying on one big central player like PayPal or Visa,” writes the NY Times.
According to the newspaper, new cryptocurrecy coin from Facebook should hit the financial markets as early as the first half of 2019.
“Facebook employees have told the exchanges that they are hoping to get a product out in the first half of the year,” predicted the NY Times’ Nathaniel Popper and Mike Isaac.