Facebook wants its upcoming cryptocurrency to work across the web
Is this really the best time for this, Facebook?
We’ve been hearing rumbling from Facebook about a potential cryptocurrency for over a year now, but a new report from The Wall Street Journal sheds more light on the digital currency and what Facebook would like to see from the coin.
Unlike many cryptocurrencies, Facebook’s coin looks to be a stablecoin. A stablecoin, unlike things like Bitcoin where value is directly correlated to market expectations and perceived value, stablecoins have a currency or other commodity directly attached to it to help stabilize its value. This is why Facebook is talking with companies like Visa and Mastercard, seeking investments totaling $1 billion.
Similar to something like PayPal in the fact that it’s available in many places, Facebook sees the coin as something that can be used directly on the social network or on other websites where purchases can be made. There are even talks of rewarding users with pieces of these coins based on ad-viewing or purchases made on the platform.
It’s an interesting idea, but considering everything Facebook is currently dealing with regarding user privacy and security, it will be interesting to see if people are willing to start trusting the company with anything remotely related to their financials.
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