Facebook recently unveiled that it seeks to launch a crypto coin. The social media giant is now talking with multiple e-commerce firms and financial to find support for its crypto payments service.
Internally known as “Project Libra”, this platform would include a crypto coin that is blockchain-powered and pegged to the US Dollar in a 1-to-1 ratio.
According to a report, Visa and Mastercard are some of the firms that Facebook has been talking with. Through Project Libra, Whatsapp users will be able to send or receive funds from friends and family.
Avenues to Make Project Libra Mainstream
Facebook’s talks with mainstream firms seek to persuade them to accept its crypto in exchange for their services or goods. The firm aims to make it possible for third-party apps and sites to integrate its payment service. This approach is similar to how Facebook’s login services and its “like” button is incorporated into different sites today.
Facebook is also thinking of using Project Libra as a reward system. This plan involves using the platform’s tokens to reward Facebook users with small amounts of crypto for viewing ads. Facebook is still searching for more ways to help Project Libra achieve mass adoption. Nonetheless, the firm has not mentioned using crypto to reward users for sharing their data.
Facebook Shifting Toward Privacy
When I think about all the different ways that people interact privately, I think payments is one of the areas where we have an opportunity to make it a lot easier.
He said this during Facebook’s F8 annual software developer conference in San Jose, California.
Zuckerberg noted that if e-commerce launches on Facebook’s different apps, brands would be pushed to spend more on advertisers. This achievement would also create new revenue streams from financial services. However, users from the financial space would have to embrace its payments features for this to happen.
Henry Liu, Facebook’s former employee believes payments and commerce are important for Facebook. According to him, they would help the firm exit its freemium advertisement business model.
Do you think Facebook will woo enough e-commerce partners to make its payments service mainstream? Let us know in the comments below.