The launch of a cryptocurrency from the social media giant Facebook has remained a matter of speculation for quite some time now. Diametrically opposite news has been floating in media with no clear indication about the timeline and probable launch of the Stablecoin from Silicon Valley-based organization. Now according to the latest reports emerging from insiders, Facebook is planning to launch a Stablecoin soon, and the project has been codenamed “Project Libra.” The decision to follow the format of a Stablecoin is a rational one given the high volatility that swamps the crypto market since December 2017. The tumultuous nature of the cryptocurrencies since then has rocked the investors’ sentiments and emerged as a major deterrence for retail and institutional investors to take a plunge into digital coins. Moreover, the highly turbulent nature at which the value of coins has increased or decreased during few last years have also affected the adoption of cryptocurrencies. This is the reason why Facebook decided to go with Stablecoin, and the move is expected to bode well for its cryptocurrency project.
Source of Information
The information was published in the Wall Street Journal which revealed that Facebook is holding consultations with major payment gateways in order to bring its plan of launching Stablecoin to fruition. Both MasterCard and Visa were in the list of parties which are being consulted for launching the payment platform. Besides, the company is also holding discussion with all major e-commerce players that are expected to fuel the adoption support to the project when it launches its crypto in the market in the future.
Funding through Venture Capital Route
Just a month ago, there was speculation that Facebook is going to raise around $1 billion through a venture capitalist route to support the launch of its project of Stablecoin. More details in this regard are still to be known officially, and nothing is confirmed or denied by the company. Another set of data emerging from inside sources confirm the fact that Facebook’s Stablecoin is going to have high stability and low volatility to encourage people to use this digital coin for their everyday transactions. The company is confident to leverage its vast number of users and hope that it won’t take a long time to them getting accustomed to this new form of currency. Among the key strategies that the company has planned to stimulate its adoption, Facebook will offer various kinds of promotional schemes including giving reward points to users in exchange for their support for the coin. Sources also revealed that users will be benefited to watch the advertisement on Facebook or to use Stablecoin to make a purchase. It is important to note that till date, Facebook has remained very elusive about the project with no official confirmation or denial coming about the project from horse’s mouth. This veil of secrecy is quite understood given the fact that so much has been riding on this project especially amidst the rising concerns of privacy that have put the company in a tight spot vis-à-vis governments, activists, and other advocators of human rights.