Facebook is making a significant step in its push towards developing its stablecoin. A report by the Wall Street Journal contains details of the recent developments.
As per the report, Facebook is now looking for firms to invest in the development of the coin. Quoting sources close to the events, the Wall Street Journal (WSJ) indicated that the social media giant is targeting to raise 1 billion U.S dollars with Visa and MasterCard who are both international money processors, already in talks of a possible investment partnership.
Project Libra, as it’s known inside Facebook, will use the blockchain technology for its virtual currency stablecoin which will be deployed on WhatsApp, a popular messaging service, to facilitate money transfer. According to Facebook, the stablecoin will be backed by the United States dollar.
Additionally, WSJ indicated that Facebook has been actively holding talks with major e-commerce retailers for them to add the coin on their checkout interface.
More than just facilitating sending money among individuals, Facebook is purportedly considering a tipping like function where Facebook users will be rewarded for interacting with advertisements. To further the usage of the Facebook stablecoin, FB Coin, the social media giant may consider embedding it to applications and or websites.
Facebook CEO says
Mark Zuckerberg, CEO, Facebook, is anticipating that if the FB Coin gains enough momentum, and owing to its various use cases, the company may see a rise in financial transactions on involving the coin and it may encourage advertisers to spend more on the platform.
Rumors of Facebook developing a digital currency started circulating last year. For example, on Dec 2018, Bloomberg reported that Facebook is developing a stablecoin although it’s “far from releasing the coin, because it’s still on the strategy, including a plan for custody assets, or regular currencies that would be held to protect the value of the stablecoin.”
However, Facebook may be eyeing the remittance market which the World Bank estimates to reach 715 billion U.S dollars by the end of 2019.