What impact does Facebook have if it issues a stable currency Libra?
According to foreign media The Block, Facebook has obtained the right to use the "Libra" trademark. According to documents submitted by the US Patent and Trademark Office in June 2018, the company apparently already obtained the "Libra" trademark. Although the owner of the submission is a limited liability company called JLV, the address of the correspondence is the same as the address of Facebook's official communication.
At present, Facebook is actively seeking a $1 billion investment. If the funds are well prepared, the date of the Facebook issue will not be far away.
Facebook's road to cryptocurrency
In May 2018, Facebook established the blockchain division, which was led by David Marcus, vice president of Messenger. Prior to joining Facebook, Marcus served as president of PayPal, and Marcus was an early Bitcoin investor. In addition, Marcus has one of the members of the board of directors of Coinbase.
At the time, Facebook announced that the blockchain department was established only to explore blockchain technology. Since then, however, Facebook has been expanding the size of its blockchain team until the company's recruitment column still shows a large number of vacant posts related to the blockchain.
Earlier this year, Facebook directly acquired the blockchain startup Chainspace and hired Chainspace employees. Four of the five researchers who participated in the Chainspace academic white paper joined Facebook. It is understood that Chainspace is a blockchain startup that focuses on fragmentation technology.
In addition, Professor Christine Katrina of the Massachusetts Institute of Technology is also involved in the development of Facebook cryptocurrency during his vacation. Katrina is a researcher who has been working on the subject of economics. He has published the "2018 Cryptographic Price Research Report" with Professor Joshua Gans of the University of Toronto, which was very influential at the time.
How is the Libra project progressing?
According to a recent Wall Street Journal report, Facebook has been working on cryptocurrency projects for more than a year. Now, the secret project codenamed "Libra" has been clearly exposed to the public. To speed up the project, Facebook is recruiting partners, including dozens of financial companies and e-commerce companies, including Visa and MasterCard.
According to reports, Facebook is still negotiating with the payment processing platform First Data in the hope of commercial cooperation, so that the company's billions of users can use "Libra" to remit money and online shopping.
In addition, the company is also negotiating with several e-commerce companies. If you plan to do so, these potential business partners may accept Libra, and these e-commerce platforms also provide a usage scenario for Libra.
Facebook can also use digital currency to pay users as a reward for viewing ads, and allows advertisers to use tokens and then use it to pay for advertising.
According to Facebook, Libra aims to eliminate the fees that users need to pay for bank card consumption and online consumption. Under the current wave of mobile payments, both may have a strong blow to bank card payments.
The significant impact of Libra
Considering that Facebook has just experienced a privacy scandal, it is currently facing a difficult public relations battle. And its cryptocurrency, Libra, will be a huge boost to privacy issues.
In today's big data era, not a Facebook family will have the problem of revealing user privacy. This problem is actually a universal problem. As we all know, cryptocurrencies have the characteristics of anonymity, which can guarantee the privacy of users. Therefore, users can protect the privacy of users' properties with Libra to a certain extent. Facebook may use this to conduct public relations.
Considering the stability of the currency and the applicability of the cryptocurrency, Facebook has set Libra as a stable currency, which is linked to the US dollar in a 1:1 ratio, making it more acceptable to users. Then Libra's release will inevitably lead to a dramatic change in the stable currency pattern.
After all, Facebook has a billion users worldwide. This number is an astronomical number. Coupled with an extremely convenient environment, Libra's liquidity is bound to be low. If Facebook considers cooperating with several large cryptocurrency exchanges to increase Libra's circulation, then the status of the USDT stable currency hegemony is likely to be unprotected. But if it's just limited to use on your own platform, then say it.
With Facebook's continuous recruitment of blockchain talents, the acquisition of blockchain companies, and so on, finally have to release big moves, blockchain industry and cryptocurrency market will usher in such a huge change, please wait and see! (five or six finances)