According to the financial new portal, the world’s largest social media platform, Facebook is seeking support from payment processor giants Visa and MasterCard to support remittances and payment transfer for its FB Coin.
It has been known to the public for some time that Facebook is working hard on a blockchain project. The social media giant has been very vague about its actual end game. It has repeatedly posted jobson its site concerning a range of blockchain based openings, ranging from developers to managers. The development of the FB Coin is also an open secret. However, until the report by the Wall Street Journal, it was known that the FB Coin would be used within its Messenger and perhaps WhatsApp for direct remittance purposes only.
The report from the news portal says for the first time that the coin will be used as a regular crypto that could be utilized outside the larger Facebook ecosystem, “Facebook is also talking to e-commerce companies and apps about accepting the coin, and would seek smaller financial investments from those partners, one of the people said”
Stable FB Coin
As reported before, the FB Coin is a stable coin. However, there are no reports as yet on which fiat it will be pegged to. The logical choice would be the U.S. Dollar. With users spanning in nearly all over the world, the development and deployment of the stable coin would mean a greater acceptance and give it an edge that all other cryptocurrencies lack.
The reported investment, a huge sum of USD 1 billion probably points towards the fiat backing that the stable coin would need. As with all stable coins, the market manipulation of supply and demand is the only way to ensure that the price remains pegged to a fiat. A rise in demand would mean flooding the market with reserve coins to mitigate the rising value, while a higher sell order would mean Facebook buying back its own coins to keep the value afloat.
All in all, Facebook has been very tight lipped about its blockchain and crypto endeavors. As more and more developments in its program become mature, the veil is lifting.