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WSJ discovered that Facebook is close to launching its own payment network

Stablecoin, an upcoming Facebook development, will be the base of fully new payment network, reports The Wall Street Journal.

As periodical informs, Facebook blockchain initiative that is named Project Libra suggests creation of “stablecoin”, secured by fiat currency.

Acquainted with situation source reported WSJ, that for support of this project social network turned for help to different financial campaigns. Investment size in Project Libra can consist up to $1 billion – these money should ensure stability of cryptocurrency.

It is important to note that according to these messages Facebook plans to launch full payment network, not just a calculation’s tool. Recently company is negotiating with payment networks as Visa and Mastercard, processings as First Data, as well as with major e-commerce players.

New currency aims decreasing commissions that are inherent to traditional payment systems, and would allow avoiding excessive volatility that is peculiar to many cryptocurrencies.

“The effort, should it succeed, threatens to upend the traditional, lucrative plumbing of e-commerce and would likely be the most mainstream application yet of cryptocurrency,” The WSJ reported.

Aside from buying in the Internet-shops, Facebook cryptocurrency can have one more purpose: social network will grant it to most active users that will be able to receive money for watching advertisements, activity in content creation or pursuing through Facebook. In this plan, cryptocurrency schedule will be similar to loyalty points accumulation on electronic markets.

However, Facebook representative that is responsible for blockchain-projects, denied to comment this information for WSJ. He reminded journalists his previous claim:

“Just as many other companies, Facebook studies different methods of blockchain technology usage”.

Source: https://www.wsj.com

Daniel Zimmermann

Daniel Zimmermann has been writing on security and malware subjects for many years and has been working in the security industry for over 10 years. Daniel was educated at the Saarland University in Saarbrücken, Germany and currently lives in New York.

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