According to a Reuters report, Facebook has set up a new financial technology company in Switzerland on May 2, focusing on blockchain and payments as well as data analytics and investing.
The company is called Libra Networks, with Facebook Global Holdings as a stakeholder. Libra Networks will focus on ” investing, payments, financing, identity management, analytics, big data, blockchain and other technologies.”
Facebook have made slow and steady moves towards their new project. The latest move was the hiring of two Coinbase compliance managers on May 14.
What we know about Facebook Coin
At the moment we don’t have specific details on Facebook coin and the kind of blockchain it’s going to use. Since Facebook is a private company it makes sense to use a private or a semi-private blockchain and the cryptocurrency is going to be similar to a stablecoin.
As for it’s main use, Facebook coin is going to be used to buy goods and services within the Facebook’s ecosystem, which will drastically change how people do business. Imagine an artist who wants to sell his/her paintings through the internet. If Facebook implement their cryptocurrency into their social platforms, the artist now, without the need of a personal website, can sell his/her artworks directly from their Facebook page and then convert the Facebook coin into the fiat currency of their liking.
Let’s not forget that if Facebook proceed with their cryptocurrency implementation, that will be the the first step into the mass adoption of cryptocurrencies in general, considering the fact we are talking for more than 3 billion people who are going to have access on it.