The Facebook (a social media dominator which needs no introduction) has recently launched their startup Libra at Switzerland, may be to materialise its plans regarding its USD-pegged coin. Albeit Facebook has not commented on the situation yet, the company is registered in Geneva and the Crypto Valley located in Zug is also close by and it prefers to keep project secretive.
LendEDU (a New-Jersey-based loan comparing website) in its survey revealed that has US adult high interest towards the announced ‘Facebook Coin’. The LendEDU blog post says: “Facebook has the ability to tap into a considerable percentage of Americans (and their bank accounts) that have alluded the biggest virtual currencies like Bitcoin, Ethereum, and Ripple. Our data seems to indicate that this is in large part due to Facebook’s potent brand.”
The CEO continued to share a broader vision for cryptocurrencies, in which they are used as a common and accessible store of wealth. He stated if big technology companies want to put their resources toward building public peer-to-peer crypto infrastructure, It would be ecstatic. An anonymous revealed that Facebook will roll out its cryptocurrency, purportedly a stablecoin, sometime in the third quarter of 2019.
Facebook has on-boarded two new compliance experts, who previously worked at major cryptoexchange of USA, Coinbase. Mikheil Moucharrafie joined Facebook as a compliance officer, Jeff Cartwright spent nearly five years at Coinbase as a compliance manager. This might indicate the Facebook are showing its commitment to indulge in the blockchain & crypto space.
The Motley Fool wrote that Facebook’s much speculated, upcoming cryptocurrency project dubbed the Facebook Coin, will likely interest traditional credit card companies such as Mastercard and Visa. The article also believes that a unified Facebook cryptocurrency would present a strong challenge to other fitness involved in the payment sector or which has payment platforms like PayPal, Google Pay, Amazon Pay, and Apple Pay.
Facebook applies a policy that required crypto and blockchain promoters to get prior consent before they could run advertisements but this change will not apply to advertisements that seek to promote a particular cryptocurrency, and ads for initial coin offerings (ICOs) remain forbidden. The purpose of such restrictions is to prevent Facebook users from falling prey to misleading advertisements.
The framework would utilize a digital coin like bitcoin, yet unique in that Facebook would mean to keep the coin as stable. Bitcoin and comparable cryptocurrencies have been vulnerable to wild vacillations in value. It said Facebook is enlisting many money-related firms and online dealers to dispatch the system. Facebook’s arrangements may incorporate approaches to monetarily remunerate clients who interface with promotions or different highlights.
There are rumours that Facebook is currently developing blockchain by creating a research group to try its hand on the innovative technology. The CFO of Binance, Wei Zhou then commented regarding the news, “I suspect it’s going to be a closed Facebook ecosystem,” followed by “Their goal is to wall off other people from coming into their system, their goal is not to open up their system to other people.”
Crypto scammers use the fabricated images and videos of Aussie celebrities in Facebook by promising amateurs lucrative profit for their investment. Major issue is that Facebook has refused to take any action against them. Few fake ads have been using photos of Waleed Aly and Karl Stefanovic, two of Australia’s best-known TV presenters for their ponzi scheme.
A man was arrested in New York and faces 20-year sentence for allegedly convincing the others to invest in cryptocurrency via Facebook and Twitter. The Attorney of United States, Richard Donoghue: “As alleged, the defendant defrauded investors by making false promises and sending them fraudulent balance statements, hiding the fact that he was stealing their money for his personal use.”