CENTRALIZED CRYPTOCURRENCY "PROJECT LIBRA"
Facebook is talking to "dozens" of financial firms and online merchants about its upcoming crypto product, codenamed "Project Libra".
The basic idea is still roughly the same one we've heard in reports from December 2018 and February this year — a crypto-based payment network and an accompanying stablecoin (a cryptocurrency tied to the value of a traditional asset, like the U.S. dollar), that would allow Facebook users to send and receive money.
But the WALL STREET JOURNAL claims, citing sources familiar with the matter, that Facebook is looking to expand its coin beyond Facebook, and have other e-commerce companies accept it. Furthermore, Facebook wants to turn its crypto offering into a digital identity of sorts, which would enable users to pay with Facebook coin on third party sites, similar to how you can now use Facebook to log into other sites. With a user base of 2.32 billion monthly active users, Facebook certainly has the leverage to make its offering attractive to online retailers.
One of the advantages of doing all this with cryptocurrency is the possibility to eliminate various fees associated with payment processing. Facebook is reportedly talking to Visa and Mastercard about the project, which is somewhat odd given that these companies are the ones who benefit from the fees mentioned above.
Facebook also may be using this product to tie online purchases to ads; for example, if a user clicks on an ad and buys a product using Facebook coins, the retailer could then use these tokens to pay for more ads (presumably at a discount), the report claims.
Facebook might also start rewarding users with crypto coins for viewing ads (web browser Brave was one of the first to implement this concept), or hand them over as loyalty points for interacting with content or shopping on its platform. If this idea goes through, that old rumor about Facebook starting to charge users for its service might turn out to be the opposite of the truth — perhaps, in the future, Facebook will actually start paying users to use (some of) its services.
Whenever anyone officially asks, Facebook reiterates its old mantra: It's exploring many different applications of blockchain technology. But as more details about its crypto project emerge, it's starting to look like one of Facebook's most ambitious ideas to date — and one that could finally bring cryptocurrency into the mainstream.
As Cointelegraph reported, interest in a fiat-centric FB Coin has already reportedly come from within cryptocurrency circles, specifically in the form of VC investment mogul Tim Draper.
Last month, plans surfaced that Draper, who is a well-known bitcoin (BTC) bull and supporter of altcoin Tezos (XTZ), would meet with Facebook to discuss investment options.
the huge fiat backing is further deliberately designed to remove perceived doubts about FB Coin versus bitcoin and other cryptocurrencies. Volatility, they said, should be avoided in order to boost uptake.
Despite the privacy scandals which are the elephant in the room for the crypto community, the fact that Facebook wants eCommerce solutions for cryptocurrency adoption shows that Mark Zuckerberg is really interested in the world of crypto – and that we could be seeing massive adoption – starting from Facebook as the leading social media platform.
Now for us the Crypto Community,
this means just one thing..
.-First: there won't be any privacy "which we already lost".
.-Second: it might be backed by us dollar. "which we already also know that it lost a 2% a year due to inflation".
So how is that stable, as they mentioned.
And by using this coin they will and can track everybody movement better that visa and mastercard, making them the king of every user's data worldwide. (Now that is scary). It will monopolized all e-commerce by using the're network and it crypto coin. There is just one question in all of this........ Why don't we all use Bitcoin and that is?.
Is the Most Secure, Cheaper in compare with Tradicional Payment Method and Nobody..let me say it again. NOBODY. control it.
Long Bitcoin. Short the Banks.
Part of this article's credit is to Mashable.com and CoinTelegrapg.com