Facebook turned 15, the social networking giant wants to leave behind all the bad press that it has received over the
Cambridge Analytica Scandal and the subsequent data breaches. The company is now focusing on some new initiatives and one such initiative is called ProjectLibre or Project Libra.
This project is aimed towards building a cryptocurrency-based payments system where digital coins will be introduced on Facebook and other websites. Facebook has already spoken with financial firms and other online merchants.
Facebook has declined to comment on the media reports and intents to keep it under wrap for now. It is learnt that, Facebook is exploring various
ways to leverage blockchain technology. Facebook has approached Visa, MasterCard, and payments processor, First Data to join as early adopters of the platform. Facebook’s cryptocurrency-based system will use a digital coin similar to Bitcoin.
In an interview Zuckerberg had said, “I’m thinking about going back to decentralised or Blockchain authentication. Although I haven’t figured out a way to make this work out but this is around authentication and basically granting access to your information and to different services.”
Facebook is also considering paying its users a fraction of coins to watch ads and other promotional content. There are multiple risks involved in Facebook’s cryptocurrency plans. Facebook does not have a good reputation when it comes to
user data and privacy. If the cryptocurrency deposits are misused, misplaced, or stolen, the company’s reputation will further erode in the eyes of its users and the company might face the ire of regulators especially in the US and UK where the company had to face strict scrutiny over previous gaffes. Facebook could also leverage this digital coin technology to allow WhatsApp users to transfer money.