UNITED STATES (VOP TODAY NEWS) — Facebook intends to create its own currency, which can be calculated not only in the framework of the social network, but also in everyday life. For this, Mark Zuckerberg is ready to talk even with his opponents.
A special department of Facebook has been working on creating a new currency for over a year, the Financial Times writes. According to newspaper sources, the new means of payment will be something more “significant and open” than just a tool for purchases and transfer of funds within Facebook, WhatsApp and Instagram owned by the company.
FT writes that digital currency will be pegged to the dollar. Facebook expects it to be liquid and be able to bargain on exchanges. To ensure this, Facebook began negotiations with the largest platforms for high-frequency trading in Chicago – Jump and DRW, newspaper sources said. Both companies declined to comment: Facebook demanded that all negotiators sign a non-disclosure agreement. The request of the Financial Times in Facebook itself was also refused to be answered.
In addition, Facebook turned to at least two cryptocurrency exchanges – Coinbase and Gemini, added two sources of Financial Times. According to them, a partnership with them needs Facebook in order for its users to keep their savings on the stock exchanges or exchange them for other cryptocurrencies or real money. Both exchanges also declined to comment.
Gemini was founded in 2014 by the twins Tyler and Cameron Wyklloss, whom FT calls the “sworn frags” of Facebook’s CEO Mark Zuckerberg. They were fellow students at Harvard and accused Zuckerberg of stealing their social network ideas.
In 2009, Facebook paid them $ 65 million. But Gemini is a valuable partner for Facebook, FT notes: this exchange was one of the first to receive permission from the authorities to launch a virtual currency pegged to the dollar.
FT experts interviewed agreed that the main problem for Facebook when launching its cryptocurrency would be restrictions on legislation. “Social networks have an advantage in the financial sphere, because they have a huge customer base, which is often used by their services. The main problem is regulation,” says David Yermak, a professor at New York University. An unnamed “payment veteran” told FT that Facebook has “good prospects for making everyday use of cryptocurrencies” for three to five years.
The Financial Times also found out that in April Facebook registered Fintech company Libra in Switzerland. As follows from the documents, she will develop software and infrastructure related to the blockchain, payments, personal information management and data analysis.
This article is written and prepared by our foreign editors writing for VOP from different countries around the world – edited and published by VOP staff in our newsroom.
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