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Facebook Sets Up New Fintech Company in Switzerland for Blockchain and Payments

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Social networking giant Facebook, on May 2, has registered a new firm, ‘Libra Networks’, which will provide financial and technology services and develop related hardware and software. The firm that specialize in developing blockchain technology was registered on May 2 in Geneva.

Notably, on the same day when Facebook reportedly registered the new firm, Wall Street Journal (WSJ) had published a report where it said that “Facebook Inc. is recruiting dozens of financial firms and online merchants to help launch a cryptocurrency-based payments system on the back of its gigantic social network”. The WSJ article pulled attention of the U.S. Senate that resulted in to an open letter to Mark Zuckerberg sent out by the U.S. Senate, asking details about their cryptocurrency project named ‘Libra’.

Citing the plan submitted by Facebook to Swiss registry office, a Reuters report said that Libra Networks will focus on “investing, payments, financing, identity management, analytics, big data, blockchain and other technologies”.

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Last December, IndianWeb2 reported that the social network giant is working on making a cryptocurrency called ‘Stablecoin’ that will let users transfer money on WhatsApp messaging app, with India being first remittances market Facebook will be focusing at.

According to reports, Facebook had already set up development team in last year and is likely to release its Stablecoin project in the second quarter of this year. The Mark Zuckerberg promoted company is looking at introducing a coin which users can spend on its website or any other. According to the WSJ report, Facebook is also looking at backing its crypto-coin with the dollar reserve. This is done to make it less volatile from Bitcoin and other cryptocurrencies.

In a more to this, Nathaniel Popper, a technology reporter at the New York Times, tweeted on Monday that sources have said Facebook is targeting as much as $1 Billion in funding from venture capitalists to support its Stablecoin project.

In a previous tweet, Popper had questioned Facebook’s intentions, saying “If Facebook is indeed aiming to eliminate credit card fees with its new crypto payment network, it raises the question of how it hopes to make money from the thing, especially if it comes alongside the company granting its users privacy and giving up surveillance revenue.”

To recall, in February this year Facebook acqui-hired a blockchain startup Chainspace, with which Facebook made its first acquisition in the blockchain industry.

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Vardaan
Founding editor at IndianWeb2, he's been writing at IndianWeb2 since 2007. Apart from blogging he had a professional career of software developer, Ux developer and search engine marketer in past. His vision of IndianWeb2 has been laid down so as to showcase, encourage and propagate Indian startups, innovation and entrepreneurship ideas.

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