Facebook is recruiting dozens of financial companies and online merchants to help its massive social network launch a cryptocurrency-based payment system.
If successful, Facebook may overturn the traditional, lucrative e-commerce channel and may become the most mainstream cryptocurrency application. In fact, Facebook has been under great pressure during this time because regulators, users and shareholders are not satisfied with their privacy performance.
According to people familiar with the matter, Facebook's cryptocurrency project plan is code-named " Project Libra, " and it has been secretly carried out for more than a year. The social media giant wants to develop a digital currency that allows users to send each other and make purchases on Facebook and the Internet. Not only that, but Facebook also intends to embed this payment system into third-party websites and apps, just as many websites and applications can now log in directly using Facebook accounts.
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In the secret plan of this latest payment system, Facebook intends to work with traditional financial companies to allow users to receive rewards based on their activities on their platform. However, the speed of the "Project Libra" project is not satisfactory, because cryptocurrencies have not yet become popular in daily payment transactions, and the traditional financial system is full of deep-rooted interests and technical barriers.
However, Facebook may solve the problem that cryptocurrency is difficult to popularize because one-third of the world's people log on to Facebook every month, and they all need to buy something. So for users, investors and regulators, it seems to be a subtle transition moment for Facebook to explore new areas. So now, Facebook hopes to pull more people into the hiring, accelerating its daily cryptocurrency trading applications, including Visa and MasterCard, the world's two largest credit card payment companies.
According to The New York Times, Facebook’s upcoming cryptocurrency payment system will use bitcoin-like digital tokens, but the difference is that bitcoin and other cryptocurrencies are vulnerable to price fluctuations, and Facebook will ensure that it The value of the cryptocurrency is stable.
According to a report by Bloomberg last December, Facebook's digital currency will be based on blockchain technology and anchored with the US dollar, while supporting users in the WhatsApp instant messaging application to send and receive funds transfer.
In fact, Facebook founder and CEO Mark Zuckerberg has realized the importance of payment and privacy e-commerce, and believes that this will determine the future of Facebook. Zuckerberg believes that if e-commerce develops on Facebook's various apps, it will drive more brands to advertise on their platforms; and if users adapt to Facebook's payment function, they will create new ones for them. The flow of financial services income.
Henry Liu, a former Facebook employee and current managing partner of YGC, an enterprise-level blockchain investment company, said:
" Payment and e-commerce will be the only way for Facebook to get rid of the current freemium and advertising business model. "
Author: White Night Editor: Qin Jin