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Facebook reveals new cryptocurrency Project Libra

Monday 6 May 2019 | 11:12 AM CET

A recent Wall Street Journal article has mentioned that Facebook is officially moving into the cryptocurrency sector with a new project.

Called ‘Project Libra’, it focusses on creating a payment network with a native stablecoin. The report adds that Facebook is currently in talks with Visa, Mastercard, First Data, and various merchants to create the network that is meant to serve the one-third of the world’s people who log on monthly to Facebook.

Moreover, the points touched by the report comprise the following points:

  • Facebook is seeking up to USD 1 billion in investments collectively from companies, in order to act as collateral to bolster and back a stablecoin that will be associated with the payments network;

  • A stablecoin will exist as the currency of the payments system, so that credit card fees for merchants to be eliminated, as well as to avoid the volatility of other cryptocurrencies, such as Bitcoin and Ether;

  • The company is considering tying the coin to Facebook’s core ads engine, rewarding users for viewing ads, and then purchasing goods, similar to how loyalty points rewards work.

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