Foreign media: Facebook develops stable currency, seeking $1 billion in venture capital

On April 8, Nathaniel Popper, a New York Times reporter, wrote on Twitter that Facebook is seeking support from venture capital firms to develop its so-called digital tokens.


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Pope quoted sources familiar with the matter as saying that Facebook is seeking $1 billion in funding to develop its digital currency program. He said that seeking external investment can make the project more in line with the decentralized spirit of the encryption community:

Given that one of the biggest attractions of blockchain projects is decentralization, access to external investors may make the project more decentralized rather than controlled by Facebook.

Pope added that the Facebook project is a stable currency that will be linked to a basket of foreign currency held in a bank account.

In December last year, a report from Bloomberg appeared in the "Facebook coin", saying that the token will be used in the mobile app App WhatsApp, providing remittance services, and will be mainly used in the Indian market.

In February 2019, The New York Times reported that the digital currency would be used on Facebook Messenger, WhatsApp and Instagram, which would involve 2.7 billion people per month. Anonymous sources told The New York Times that Facebook hired more than 50 engineers to develop cryptocurrencies. In addition, it is reported that Facebook has begun to purchase "Facebook coins" from anonymous cryptocurrency exchanges.

As for venture capital, Jalak Jobanputra, founding partner of Future Perfect Ventures, said in February that cryptocurrencies have maintained a bear market and have already had a negative impact on venture capital firms. When asked if there is a downward trend in the risk assessment of the entire digital currency market, Joe Banputra said that given the decline in trading volume last year, if we see the valuation of the secondary market of some of these companies decline, I am not I will be surprised.