The whole cryptocurrency industry is waiting for the big news, which is basically the worst-kept secret ever: Facebook is about to launch a crypto project. However, the company has neither officially explained it nor the details about the coin. The moment is about to come, though.
Facebook, the largest and most influential social media network in the whole planet, will make the announcement of its crypto project this month, according to a report from news conglomerate CNBC, in recent hours. Employees of the site will, purportedly, earn a part of their wages in the coin.
CNBC cited a report made by The Information on the subject. The former said that Facebook will have third parties administrating the reigns of the cryptocurrency, in an attempt to make sure that the coin is not centralized.
Third Parties to Serve as Nodes
These third parties will allegedly pay up to $10 million for the chance to be a node in the system for Facebook’s token. They will serve as nodes in order to validate transactions made in the ecosystem.
Per the CNBC piece, “cryptocurrency nodes contain the computing power necessary to resolve complicated mathematical equations, which are used to validate transactions. They are typically decentralized and spread among thousands of parties, but Facebook is creating a foundation with named partners to help manage its currency.”
The rumors have Facebook’s token as a stablecoin, integrated as a payment method in the whole Facebook’s network, including proprietary products and services such as instant messaging and VoIP tools WhatsApp and Facebook Messenger, and pictures and videos app Instagram. The stablecoin, according to The Information, will be available through physical ATM-like devices and machines.
Whilst the crypto space has speculated about Facebook’s token and rumored details, the company has stayed silent about the matter. However, it was made public in recent days that the United States’ Commodity Futures Trading Commission (CFTC) is talking with the social media giant about its upcoming asset.
Facebook, for its part, has been doing its due diligence in the matter. Last month, it acquired the “Libra” trademark for the cryptocurrency: it was reported by sources familiar with the situation that Facebook was looking for financial firms to develop the token, and that the name of the project’s codename is, indeed, Libra. The rumours did not stop when, also in May, the Mark Zuckerberg-owned company registered a new financial tech business, named Libra Networks LLC, with the Geneva Commercial Register in Switzerland.
The Project that is on Everyone’s Lips
Facebook has been teasing its users about the idea of a cryptocurrency for quite some time now. According to CNBC’s report, “about a year ago, the company appointed former PayPal Executive David Marcus to begin exploring opportunities with blockchain, the technological underpinning for cryptocurrency. Since then, several outlets have reported that the company has been building its own digital currency.”
The digital currency, per the CNBC piece, will be available for users “to store, trade, and exchange for regular currency, in part through Facebook apps.”
By Andres Chavez