Blocking advertising for blockchain and crypto projects in its own network, while quietly working in on its own crypto-asset in the background. Тhis is the world of Facebook. New insider insights from The Information suggest that Facebook prepares to present its own cryptocurrency already this month. It is supposed to be used for transactions on Facebook’s in-house app WhatsApp, Messenger, and Instagram. The publication of a white paper is scheduled for June 18th.
Blockchain network under construction
To be able to participate as a node in the blockchain network where the transactions on the blockchain are verified, Facebook charges $ 10M per operator. So, a semi-decentralized system should be created, which can not be accused that it is controlled only by Facebook.
Mark Zuckerberg should have had even discussions with his former co founders and rivals the Winklevoss twins, Financial Times reported two weeks ago. Despite the fact they sued each other at a point, now Cameron and Tyler Winklevoss are the founders the Exchange Gemini, which might be a project of interest for Facebook. Reportedly, there have also been discussions with regulatory authorities.
Stablecoin for payments
Overall, Facebook hopes to raise $1B with around 100 nodes. This money should be used to fund the planned Stablecoin. Unlike Bitcoin or Ethereum, the “Facecoin” should not be volatile and invite to trade, but rather act as a kind of digital cash, with which one can also pay in shops. “Sending money should be as easy as sending a picture,” said Zuckerberg at the in-house Developer Conference F8 a few weeks ago.
“The value of the Facebook Coin should be kept stable through a basket of Fiat currencies,” said Laura McCracken, Head of Financial Services & Payment Partnerships Northern Europe on Facebook, in an interview with WirtschaftsWoche. So, the crypto-asset will probably be tied to different currencies, and not only the dollar.
Subsidiary in Switzerland
According to The Information, it is also planned to set up physical crypto-ATMs where users can exchange fiat money for Stablecoin. As reported, the offer should primarily target people in emerging markets. As a digital, cross-border currency there should be no transaction fees.
There are different names for the project – fb Coin, GlobalCoin or Libra are in circulation. The latter name goes back to the Libra Networks GmbH – a Facebook subsidiary, which was established in Geneva, Switzerland. In the Geneva Commercial Register, the company is described as developer of big data, blockchain and financial services technologies. Switzerland and especially the small town of Zug are known for hosting many blockchain projects – including the Ethereum Foundation.
Recently, Facebook has also loosened its ban on cryptocurrency advertising on its own network. It all points in one direction: The “Facecoin” will come soon.