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Last Updated : May 03, 2019 12:05 PM IST | Source: Moneycontrol.com

Facebook plans in-house cryptocurrency payment service: Report

The idea is to reward users with cryptocurrency for watching advertisements.

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Facebook is strategising for an in-built cryptocurrency payment service. The social networking giant is in talks with various financial and e-commerce companies to support the development, according to a report by the Wall Street Journal.

Among those Facebook has approached are Visa and MasterCard.

Moneycontrol couldn’t independently verify the report.

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Known internally as Project Libra, it would mean the development of a “stablecoin” to be run on blockchain technology and pegged on the US Dollar, according to a report by the Mint.

Stablecoins are pegged to an exchange or a regular currency to minimise volatility.

The move has been long in the making after former PayPal President David Marcus was hired for Facebook’s Messenger app in 2014 and made the head of the company’s blockchain initiatives in May, the Mint report added.

The idea is to reward users with cryptocurrency for watching advertisements. They would be able to send the money to each other using WhatsApp, the platform’s messaging application, as per the WSJ and Bloomberg.

The move is seen as a gateway to alternate revenue streams for the tech giant which has been battling privacy concerns. CEO Mark Zuckerberg has spoken about how e-commerce will be the future of Facebook.

The company may also consider embedding the system for other websites and apps, thus eventually creating new revenue streams via third-party adopters of its payment features.

“Payments and commerce are Facebook’s only way out from its freemium, advertisement business model,” said Henry Liu, a former Facebook employee and managing partner of YGC, an enterprise blockchain investment firm told the WSJ.

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First Published on May 3, 2019 12:05 pm
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