Facebook seeks to disrupt credit card systems with its cryptocurrency-based payment system, according to a report

We remember that some time ago, we learned that Facebook was working on the creation of its own cryptocurrency based on the blockchain for the transfer of money via WhatsApp. On May 3, the Wall Street Journal (WSJ) announced that the social media glove Facebook was looking for a $ 1 billion investment that would allow it to set up its cryptocurrency-based payment system. The goal is to create a system that can be used as a similar payment option PayPal and Apple Pay, accessible to anyone making purchases on the internet which could compete directly with traditional credit cards.

For the moment, it is not yet clear how the product will work, but already Facebook is turning to conventional financial institutions in order to strengthen the value of its currency to protect it from sudden fluctuations that Bitcoin knows. The WSJ report reveals that Facebook is currently in discussion with major Visa and MasterCard payment networks about potential support. If the efforts currently being made by Facebook prove conclusive, it would threaten to upset the traditional plumbing of electronic commerce and would probably be the most widespread application today of cryptocurrency.

One of the big strategic advantages of Facebook is the fact that a lot of websites already use its APIs to allow users to log in using their Facebook credentials. It would therefore be enough just to extend this already existing infrastructure to allow these users to make purchases on third-party websites using their Facebook credentials. It seems that the interest for this currency Facebook has already begun to be felt in the cryptocurrency environment. Indeed, last month, a meeting between Tim Draper, famous American investor and Facebook, was announced.

The WSJ report also mentions that Facebook wants to financially reward users who interact with advertisements or other features on its platform. In the eyes of some, the system that wants to set up Facebook, still presents some gaps that must absolutely be resolved. However, the interest he has already aroused in people who are close to cryptocurrency, suggests that beautiful things are coming.

Source: wsj

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