Facebook Registers A Blockchain Startup In Switzerland

On 2^nd May, the giant registered a fintech startup, called Project Libra, according to the Swiss commercial register.

The main stakeholder behind Libra networks is stated to be Facebook Global Holdings. The company`s mission is provision of fintech services, data analysis, payment innovations, and both hardware and software development.

Despite Facebook`s frequent announcements on implementation of innovations and new releases of products and services, this time the company was very quiet. The launch of the Libra networks was not accompanied by any sort of promotional activities. The new company is registered regardless of the rumors that Facebook’s CEO Mark Zuckerberg is planning to use in-house cryptocurrency for cross-border payments. The payments have been planned to be operating in India and its Whatsapp user-base, but experts are predicting India to be a test country before Facebook rolling out a global payment shift towards cryptocurrencies.

Libra Networks is the continuation of Project Libra, which started over a year ago, with a key role – to ease payments and money transfers via Whatsapp. Since then, Project Libra continuously expands, now including direct payments to the Marketplace, ad-viewing rewards, content interaction rewards, and so on.

The currency is most likely to be a stablecoin, tied to one of the global fiat leaders, such as US dollars and Euro.

The news about Facebook’s blockchain startup comes after accusations about private data leaks from their servers. US regulatory bodies asked Zuckerberg how the new startup is going to function throughout the privacy crisis. A major issue for Facebook was reported to be the struggle of securing skilled workforce. Complaints about the number of limited in number talented software engineers came from company`s recruiters.

Nevertheless, Facebook is moving towards adopting new technologies and deploying the power of blockchain. If social media giants accept the technology, the move will boost the entire crypto sector and the technology behind it.