Facebook has been keeping secrets about its new cryptocurrency, which is not how the company usually goes about doing business. Unlike Apple who only releases products without releasing much information to the public, Facebook has a habit of making public announcements even at the concept stage. Facebook is keeping secrets and most of the information that is currently available is through leaks. This has led to a lot of speculations spreading through the internet. For a company like Facebook, one has to wonder, what is it that they are hiding?
In a report by Reuters, Facebook has set up a fintech company in Switzerland, a leading hub for blockchain and crypto technology. According to the report, the company will focus on blockchain, payments, data analytics and investing. The company was named Libra networks and was registered on 2nd of May, and according to Geneva’s commercial register, the company will provide financial and technology services and develop related hardware and software. Facebook hasn’t commented on the topic yet, but according to the registry, the stakeholder is listed as Facebook Global Holdings, this is probably an extension of the companies Libra project.
Facebook’s pet project
Libra project has been going on for some time. It was first intended for payments within Whatsapp, but the project has expanded to a lot recently. Currently, the plan is to use a stable coin pegged to the value of a US Dollar for a wide variety of things, like e-commerce payment as a reward for viewing ads, shopping online, and interacting with content. Even though the project has created a lot of enthusiasm within the crypto community, lawmakers in the US are not that happy about it. The U.S. Senate Banking Committee this month sent an open letter to Facebook CEO, Mark Zuckerberg, asking about how the new cryptocurrency-based payments system would be compliant to legal, regulatory, privacy and consumer protection concerns. This was following a Wall Street Journal report earlier.
Facebook has spent some serious resources into project Libra, from opening an office in London to hiring almost a hundred engineers there. And now finally registering the company in Geneva, Facebook is serious about the project, but its release, if it ever happens, remains to be seen. The secrecy around the project may be due to the fact that the company is skeptical about the project and might not even roll it out. But everything about the company is speculation and leaks at this point, we will have to basically wait until Facebook releases it.
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