Cryptocurrencies are expanding all throughout the world. As this unique way of payment grows, it is no surprise that big companies, like Facebook, are trying to cash in on the success.
According to MarketWatch, Facebook hired dozens of financial firms and online merchants to help launch a cryptocurrency-based payments system.
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Facebook is Being Secretive
Facebook is a popular social media platform where friends can chat, play games and share posts. The social media service launched in 2003, and for the last decade has taken the world into a storm. Mark Zuckerburg has been working tirelessly to create new solutions and ideas to be implemented into this social media site.
While Facebook sounds great on paper, they are known for being secretive. Just this past month they have quietly been exploring and creating a new payment system only for Facebook.
Facebook Crypto Payment Initiative: Project Libra
So far, we have discovered the name of the project, “Project Libra”. This project is funded by Facebook and was created in order to become the centerpiece of a brand new payment network according to the report published by the Wall Street Journal.
The long-talked about cryptocurrency project will actually represent a stable coin as the native currency of Facebook’s upcoming payment system.
Supposedly, Facebook’s stable coin should be backed by the government’s currency, while an anonymous source close to the company claims that Facebook is already working on hiring financial companies to help the project see its realization.
Stable Coins Becoming a Trend
Starting with the most famous stable coin backed by the US dollar, Tether (USDT), was the first stable coin to hit the crypto market, pegged to the value of USD.
Later on, other stable coins appeared, some of which were backed by the US dollar as well, euro and even gold. IBM in collaboration with Stellar Lumens (XLM) also designed their own stable coin.
Facebook also seems to be following the trend with Project Libra, however, the company is looking to have 1 billion dollars funded for the project before Facebook is able to launch their payment platform and the stable coin.
