Social media giant, Facebook is reportedly looking for investors to support Chief Executive Officer (CEO) Mark Zuckerberg’s idea of an integrated cryptocurrency payment system. Zuckerberg is reportedly also looking to launch a fiat-payment system.
News portal, World Ethereum News reported that Nathaniel Popper, a well-known contributor of the New York Times, published a tweet, saying that Zuckerberg and his team are in talks with VC companies in search of funding Facebook’s crypto project.
In April this year, Popper said, “Update on Facebook’s cryptocurrency: Sources tell me that Facebook is now looking to get VC firms to invest in the Facebook cryptocurrency project we reported on earlier this year. I hear they are targeting big sums — as much as $1b.”
Given that one of the big allures of blockchain projects is the decentralization, getting outside investors could help Facebook present the project as more decentralized and less controlled by Facebook.
— Nathaniel Popper (@nathanielpopper) April 8, 2019
He added that given that the allure of the blockchain is decentralized, getting outside investors could help Facebook present the project as more decentralized and less controlled by Facebook. Popper further stated, “One person I spoke with said that Facebook is talking about using the money as collateral for its cryptocurrency. Facebook has been designing the coin to keep a stable value, pegged to a basket of foreign currencies held in bank accounts.” The portal further stated that the project was termed Project Libra and credit card giants such as Mastercard and Visa are a part of the discussion.
Last month a Barclays’ analyst, Ross Sandler, reported that the rumoured cryptocurrency “Facebook Coin” could generate $19 billion in additional revenue by 2021. And, conservatively, the firm could see a base-case incremental $3 billion in revenue from the successful cryptocurrency implementation.
At the time he had said, “Merely establishing this revenue stream starts to change the story for Facebook shares in our view. The new cryptocurrency of Facebook could “re-invigorate that business strategy.”
Sandler, in his report had said, “Expanding into payments could give Facebook a lifeline if investors suddenly become less forgiving. Using some form of cryptocurrency could generate a new revenue option — something “sorely needed at this stage of the company’s narrative.”
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