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Facebook is developing a fiat-backed stablecoin payment system

Its so-called 'cryptocurrency' takes another step forward

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While details have remained scarce, Facebook’s plans to create its own cryptocurrency have not exactly been secret. But with its latest announcement, Facebook looks to be developing its own stablecoin-backed payment system, The Wall Street Journal reports.

In what it’s calling Project Libra, Facebook is developing a stablecoin backed by government – AKA fiat – currency. It has not disclosed what currency, though.

A source close to the matter confirmed to The Block that Facebook is actively looking for financial firms to assist in making Project Libra a reality.

Facebook is also in conversations with payment networks Visa and Mastercard to support the launch.

The social media Goliath is reportedly thinking about using its stablecoing as part of its advertising platform. It would supposedly reward users for viewing adverts and purchasing the associated product. Kind of like an elaborate affiliate scheme.

The social media giant hasn’t eluded as to when its stablecoin payment network will launch. But with this news, its “cryptocurrency” plans do become a little clearer.

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Published May 3, 2019 — 08:00 UTC