A white paper was released on June 18, and Facebook’s cryptocurrency is really coming.
Facebook is finally going to announce the details of its cryptocurrency program Libra. According to TechCrunch, a source revealed that Facebook is currently planning to release a white paper on June 18 explaining the basic information of its cryptocurrency . He said that a number of investors have been told about the release time. At the same time, Laura McCracken, the company's responsible for Nordic financial services and payment partnerships, confirmed this time and said that the cryptocurrency would indeed be tied to a basket of currencies rather than a single currency (such as the US dollar) to prevent prices. fluctuation.
Yesterday TechCrunch received a request from the Facebook blockchain team for the June 18 news ban. Previously, The Information reported that Facebook's cryptocurrency project will be launched later this month.
Facebook declined to comment on any news about its cryptocurrency items. However, if there is some confusion between Facebook and the partner or the government, the date of the announcement may change. According to sources, Facebook's goal is to officially launch cryptocurrency in 2020 .
The official release of Facebook's cryptocurrency will open a new era of business and social network payments, which can be used to provide low-cost or free services for cross-border remittances for domestic households, either daily payments between friends or overseas immigration. Bypassing the credit card transaction fee can also allow Facebook cryptocurrency to provide a cheaper payment method for traditional e-commerce payment merchants, and to promote micropayments such as content creators. At the same time, it can better understand what products or brands the user has purchased, and can help Facebook to measure, rank and position the ads to expand their core business.
Here is TechCrunch's knowledge of the Facebook blockchain project:
Name: Facebook may use Libra as the public name of its cryptocurrency, not the GlobalCoin reported by the BBC. According to Reuters, Facebook has registered a company called Libra Networks in Switzerland to provide financial services. Libra may be taken from LIBOR (London Interbank Offered Rate, the benchmark interest rate for interbank lending), LIBOR for banks, and Libra for the public.
Token: The cryptocurrency will be a stable currency. According to The Information, Facebook has talked with financial institutions to provide funds to build a basket of legal and low-risk securities worth $1 billion, which will serve as collateral to stabilize the currency. Facebook is working with multiple countries to get pre-approval of stable currency.
Use: Facebook's cryptocurrency will be traded at zero rate through Facebook products (including Messenger and WhatsApp). Facebook is working with merchants to accept this stable currency as a means of payment and may offer registration rewards. The Information also reported that Facebook also wants to launch ATM so that users can exchange traditional assets with cryptocurrency.
Team: Facebook's blockchain project is managed by David Marcus, former president of PayPal and vice president of Facebook Messenger. His team includes Kevin Weil, former vice president of Instagram products, Sunita Parasuraman, former head of Facebook's financial operations, and many elite engineers. Although Facebook's partnership has led to many leaks, the team has been working in a dedicated department at Facebook headquarters to improve confidentiality.
Governance: The Information reported that Facebook is negotiating to create an independent foundation to manage its cryptocurrency, requiring the company to pay $10 million to operate a node in exchange for token governance. Node operators may also receive financial benefits. By introducing a degree of decentralization into project governance, Facebook may be able to avoid the regulatory issues of holding a large number of global currencies.