The Wall Street Journal has reported that Facebook is in talks with various e-commerce companies and financial firms to support its crypto payment that is under development. So far Facebook has engaged MasterCard and Visa about the project that is known as Project Libra.
Crypto Payment
Facebook is expected to commit $1 billion to the development of crypto payment. The company has approached various e-commerce companies to invest in its crypto payment feature and be a partner of the network. Paying via crypto will not be limited only to Facebook apps but will also be used by the e-commerce partners that support the feature thus enabling the cross transaction between apps. The company plans to motivate merchants by removing transaction fees for cryptocurrency-based purchases.
Facebook’s crypto payment will be pegged on the dollar and users of Facebook app WhatsApp can use it to send money across the platform. With its more than one billion users, Facebook could open the path towards the adoption of cryptocurrency. Social media has the capacity to change the cryptocurrency ecosystem that currently boasts 100 million users. Facebook will incentivize users to pay with crypto with a percentage of the cryptocurrency for engaging with content and viewing ads.