Business
Facebook’s Cryptocurrency Project: What Do We Know So Far?
Social media giant Facebook, with over 2 billion active users, created its blockchain team in May 2018. Now, one year later, details of Facebook’s plans are still sparse and mostly unconfirmed. Facebook is very secretive about its plans, but if it does launch its rumoured stablecoin, it could have a significant impact on the blockchain and cryptocurrency space.
According to Bloomberg reporting on May 8, 2019, Facebook’s blockchain team is 50 strong. Bloomberg, citing anonymous but familiar sources, says Facebook’s product could be announced in coming months. In addition, a cryptocurrency stablecoin could be launched first in India. The country is a growth market for Facebook, and it’s already testing payments technology via WhatsApp Pay in the region.
Blockchain, payments, and compliance talent
The blockchain team has extensive payments technology expertise, around one in five used to work at PayPal. Former PayPal president David Marcus joined Facebook in 2014 to lead Facebook Messenger. As per Bloomberg, Marcus left Messenger last May issuing a statement that said he was “setting up a small group to explore how to best leverage blockchain across Facebook, starting from scratch.”
On May 14, as per CoinDesk, it emerged that two Coinbase ex-employees had joined Facebook in compliance roles. At least one, Mikheil Moucharrafie, is involved with Facebook’s blockchain team, as “compliance officer for blockchain.” The other, Jeff Cartwright, is a policy and compliance manager for Facebook according to CoinDesk and his LinkedIn profile.
Days earlier this May, the US Senate Banking Committee wrote an open letter to Facebook CEO Mark Zuckerberg requesting details on its secretive cryptocurrency plans over further data privacy concerns. The Banking Committee’s letter seemed to follow a Wall Street Journal (WSJ) article which indicated that Facebook was recruiting financial firms and online merchants to help launch its cryptocurrency project titled “Project Libra.”
The foundation for a Facebook payments infrastructure?
WSJ, citing people familiar, says Facebook’s project includes a cryptocurrency that could be used for payments on Facebook and across the internet, and for transfers between users. And, also that the payments system could be used to reward individuals for their activity on the platform. A Facebook spokesperson would not comment to WSJ but referred to the social media company having previously said it “is exploring many different applications.” Bloomberg reports that Facebook insiders “have cautioned that the company is likely still far from releasing this type of product.”
Previously, New York Times technology reporter Nathaniel Popper revealed his sources had confirmed Facebook is looking for massive outside investment in its project:
“Sources tell me that Facebook is now looking to get VC firms to invest in the Facebook cryptocurrency project we reported on earlier this year. I hear they are targeting big sums – as much as $1b.”
Mr. Popper and co-author Mike Isaac, in February, citing four sources in the know, wrote that Facebook had been speaking to cryptocurrency exchanges “about selling the Facebook coin to consumers.”
Facebook also acquired “talent” from blockchain and smart contract platform developer Chainspace in February, according to Mashable and Cheddar.
Most recently, Reuters reported on May 17, that Facebook had created a fintech firm registered in Switzerland focused on blockchain and payments, but also analytics, big data, and other technologies. The company, Libra Networks, will provide financial and technology services and develop hardware and software, according to Reuters and Geneva’s commercial register.
Are they still exploring or ready to launch?
Publicly Facebook appears to be sticking to its “exploring” blockchain line. Yet these and other clues lead many to expect the possibility of a Facebook cryptocurrency launch, maybe even this year in India. If this happens and is successful for Facebook, it could well eventually widen the geographical reach of its plans and push forward with integrating cryptocurrency-based payments and transfers across one, more, or all, of its social and messaging platforms. It’s undoubtedly a wait-and-see situation, but it’s easily assumed that Facebook is building the foundations for such progression.
With Facebook’s sheer user reach, a widely used Facebook cryptocurrency could be an unstoppable catalyst for the space. However, Facebook’s operations are already under scrutiny. With global regulators still uncertain about cryptocurrencies, and governments concerned about Facebook, the combination could mean additional hurdles for Zuckerberg’s company.
It could also be questioned as to whether Facebook users retain enough faith in the platform and how it uses their data to entrench the brand further in their lives. Then there are blockchain and cryptocurrency proponents, who will they be able to balance blockchain’s decentralized, data ownership empowering ethos, with Facebook’s centralized, potentially data hungry, structure.
I will right away grab your rss feed as I can not to find your e-mail subscription link or newsletter service. Do you have any? Kindly permit me understand in order that I may subscribe. Thanks.
of course like your website however you have to check the spelling on several of your posts. Several of them are rife with spelling problems and I to find it very troublesome to tell the reality nevertheless I¦ll certainly come again again.
I’ve come across that today, more and more people are now being attracted to cams and the field of pictures. However, to be a photographer, you need to first commit so much time period deciding which model of video camera to buy plus moving store to store just so you may buy the least expensive camera of the brand you have decided to pick. But it would not end just there. You also have take into consideration whether you should purchase a digital camera extended warranty. Many thanks for the good points I received from your web site.
Hey, you used to write wonderful, but the last few posts have been kinda boring? I miss your tremendous writings. Past several posts are just a little out of track! come on!
I have been checking out a few of your articles and i can state pretty good stuff. I will surely bookmark your site.
I have witnessed that rates for online degree professionals tend to be an awesome value. Like a full Bachelor’s Degree in Communication with the University of Phoenix Online consists of 60 credits at $515/credit or $30,900. Also American Intercontinental University Online makes available Bachelors of Business Administration with a complete school feature of 180 units and a worth of $30,560. Online learning has made taking your higher education degree far less difficult because you might earn your own degree from the comfort of your house and when you finish from work. Thanks for all the tips I have really learned from your web-site.
Hello, you used to write excellent, but the lastseveral posts have been kinda boring? I miss your super writings.Past few posts are just a bit out of track! come on!Check out my blog post … Graciela
Thanks for sharing your ideas. I’d also like to mention that video games have been at any time evolving. Today’s technology and improvements have served create genuine and fun games. These entertainment games were not actually sensible when the concept was first being tried. Just like other forms of technologies, video games too have had to advance by many generations. This is testimony for the fast growth of video games.
Howdy very nice web site!! Man .. Beautiful .. Wonderful .. I’ll bookmark your web site and take the feeds additionally…I am glad to find a lot of helpful info right here in the submit, we’d like develop more strategies on this regard, thanks for sharing.
Appreciate you for sharing these wonderful blogposts. In addition, an excellent travel and medical insurance strategy can often reduce those concerns that come with journeying abroad. Your medical emergency can soon become very costly and that’s certain to quickly decide to put a financial impediment on the family finances. Having in place the suitable travel insurance offer prior to setting off is worth the time and effort. Thanks