Facebook is Planning Its Cryptocurrency on the Loyalty Points System

According to the reports by The Wall Street Journal – Facebook is looking for investors for its projected cryptocurrency and merchants who might acquire the virtual coin.

Facebook’s eventual accomplices are being approached to pitch into venture finance, valued to at least $1 billion. It would work as support for Facebook’s coin and alleviate the risky swings that make digital currencies such as bitcoin challenging to spend. It is in an endeavor to spread the reach of its blockchain-based marketplace.

Invasion of Facebook into blockchain could look somewhat like a loyalty-points system. According to which tokens acquired through, as well as spent on Facebook services or cashed out somewhere else through accomplice merchants.

A professor at the University of Toronto – Joshua Gans notes contributions such as the Apple Card hold a similar idea – it is a service that could disturb the credit card business. It is, for the most part, a substantial approach to purchasing a more considerable amount of Apple’s products and applications.

Gans is but doubtful that Facebook would compensate users for watching ads. It’s a highly tricky method to create — unless it included something like a discount for purchasing a product via the Facebook ad. As per Gans, for the merchant, offering money to them is a challenge too. It inspires businesses to spend on services and ads on Facebook with the coin that could be a means of restricting the money flow out of the system. Thus, businesses are more inclined to discard their Facebook coins at the month’s end in support of real money.

Additionally, Facebook still encounters several challenges, from clarifying how it will manage the system to lessen the privacy concerns of users. It also has to discover the way to funnel money in and out of its currency, which generally exchanges handle for other cryptocurrencies.

Thus, it’s working process is skeptical.

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Maguire Jovich

Maguire Jovich is a QA whose principal duties are detecting, logging, and adequately tracking the software system errors. He also skilled in developing and performing test scenarios to deliver a reliable product to the clients. When not working you will find her humming her favorite songs in her artistic voice!
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