The world’s biggest social network is poised to bring cryptocurrencies to the mainstream of business with a major announcement today.
Multiple news sources report that Facebook (FB) will publish details on “Project Libra.” The new cryptocurrency will enable money transfers and payments via services including Messenger and WhatsApp. Major companies like Visa (V), Mastercard (MA), PayPal (PYPL) and Uber (UBER) are already involved.
Libra will function as a so-called stablecoin, linked to fiat currencies such as the U.S. dollar and euro. That can potentially avoid the kind of price swings that occur in major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
FB’s announcement comes at a pivotal time for both the company and the blockchain revolution. As a firm, FB is looking for new ways to monetize its huge user base now that traffic growth has peaked. It also faces potential anti-trust actions by the U.S. government.
A New Chapter for Blockchain?
Project Libra could also mark a new chapter in the development of cryptocurrencies. Previously, assets like BTC and ETH were the concern of developers or small private companies. Now, major firms like JPMorgan Chase (JPM), MA and FB are involved.
By the time they’re done blockchain may be as common in the financial landscape as checks and credit cards.
BTC and FB are both rallying into the announcement. Over the weekend, BTC broke above $9,000 for the first time in more than a year. FB also came roaring back from a late-May crash when traders panicked about the potential anti-trust actions.
Don’t forget that, aside from crypto news, Mark Zuckerberg’s juggernaut also beat estimates the last two times it issued quarterly results.
In conclusion, interest in blockchain has slowly recovered this year following a big drop in 2018. Now one of the world’s most prominent companies is about to enter the space, with the potential bring cryptocurrencies to the mainstream like never before.