For more than two years, Facebook has been showing interest in the cryptocurrency and blockchain space. Last year, rumors started circulating that the company is planning a cryptocurrency payment project. Now, according to new reports on the Wall Street Journal, the company is meeting up with several firms that would support its cryptocurrency payment service.
So far, Facebook has spoken with MasterCard, and Visa about the project which it has dubbed ‘Project Libra’. The company is going to create a dollar pegged cryptocurrency for WhatsApp users. This dollar pegged cryptocurrency, also known as a stable coin, will be used to send money from one user to another.
Apart from recruiting e-commerce and financial services firms to join its course, Facebook is also considering developing a reward scheme that would let users earn cryptocurrencies by viewing Facebook ads just like Brave Browser. The company may also decide to embed the cryptocurrency payment service into third-party sites the same way third parties use log-in apps.
The cryptocurrency payment system is one way Facebook is trying to boost its privacy and security features. A while ago, Mark Zuckerberg said that private commerce and payments will play significant roles in the future of Facebook. He believes that brands will be more willing to spend on advertisement if Facebook creates an e-commerce solution. This would also help the company create a new revenue stream. A move that would boost their yearly profits.
Talking about Facebook’s interest in blockchain technology and cryptocurrencies, a former employee of the company Henry Liu, said; “Commerce and payments on Facebook are the only ways the company can benefit from a freemium advertising model.”
Facebook has been secretive when it comes to its blockchain and cryptocurrency plans. This may be because it doesn’t want to reveal details until it is ready to launch. However, the company has been hiring blockchain developers and building its blockchain team for years now. It’s only a matter of time until the product will be released.