Facebook, the leading social media firm, experienced tough situations in recent years. Now, Facebook is preparing itself to launch its new cryptocurrency based project.
As per the data in The information, Facebook will reveal about its cryptocurrency project in the days to come, apart from this the employees working on the project will be allowed to take their salary in the new form of currency.
It is also reported that Facebook plans to relinquish the control of the digital currency to third-party organizations. Facebook is doing this to ensure that the crypto asset is not completely centralized and to reduce the financial regulators.
Numerous media outlets have speculated for months now, about Facebook developing its own crypto coin that allows users to store, trade and transfer for fiat currency by using Facebook’s platforms, WhatsApp, Instagram, and Messenger. By developing a digital coin, Facebook could offer a simple way for its 2 billion users to transfer cash and shop across different countries, and this could eventually help the company to expand apart from advertising. Only through advertising, the social media giant firm earns most of its revenue.
Advertisement model of Facebook has received criticism from lawmakers; privacy advocates and also from the press due to its method of collecting user information.
From a few months, Facebook has associated itself with tech and financial companies to gain support for its secretly proposed project. People believe Facebook’s crypto project will give tough competition to Bitcoin.
The report states that Facebook is requesting third-parties to act as nodes to assist in managing the cryptocurrency and even negotiating the charges that it will be offering, to be around 10 million dollars. They also need to authenticate transactions on the network for the digital token of Facebook.
More on this, the much speculated digital coin of the firm will be incorporated as a payment tool on the various Facebook-owned platforms, including messenger. The report also mentioned that Facebook is planning to use physical based ATM-like machines, through which the users can purchase the currency.
In 2018, Facebook had appointed David Marcus, the former executive of PayPal- a payment provider company, since then, media outlets started speculating about the crypto project. David Marcus started looking over the opportunities of blockchain. The company has remained secret on the crypto project and revealed very little about it.
Recently, the Financial Times revealed that Facebook was discussing about its cryptocurrency project with Commodity Futures Trading Commission of the United States.
According to Information report, Facebook named its project as Libra and is intending to aim at developing nations, where their fiat currencies are not so strong and will operate as a ’borderless currency.’
The Information report mentions that Facebook is forming a foundation with only selected partners so to help control its digital currency. Digital currency nodes have the needed computing power to solve complex mathematical equations, used to approve transactions.
During Facebook’s conference for developers, held earlier in 2019, Facebook CEO, Mark Zuckerberg said that payments play an important role for the company. Although CFO David Wehner and Operating Chief Sheryl Sandberg were uncertain about the project internally, The Information mentioned.