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Social Media Giant Facebook May Launch its Cryptocurrency in June

Earlier in June, the company ignited a discussion about its crypto Stablecoin initiative with the US Commodity and Futures Trading Commission (CFTC)

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FILE - The Facebook logo is seen on a shop window in Malaga, Spain, June 4, 2018. (VOA)

Facebook may finally launch its long-rumoured cryptocurrency later in June.

The cryptocurrency, under Facebook’s “Project Libra”, is reportedly aimed at allowing Facebook’s global users to transfer money across borders and to make online purchases.

With its cryptocurrency, the social networking giant is planning to include bonuses for merchants that adopt it. Infact, employees in the project would even have the choice to be paid in the cyber currency, Engadget reported on Wednesday.

Given Facebook’s infamous security management, the blockchain would supposedly be “far more centralised” than Bitcoins and the company would tap outside firms to help run the system.

It would charge the third-party firms a licensing fee of $10 million per partner and roll that into backing the currency with traditional money to keep it stable.

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Bitcoin is a cryptocurrency and worldwide payment system. Wikimedia Commons

In an interview with Harvard Law Professor Jonathan Zittrain in February, Facebook CEO Mark Zuckerberg said he was “potentially interested” in putting the Facebook login on the Blockchain technology.

Later in May, Facebook started hiring for its cryptocurrency-based payments on its platform that has 2.38 billion users.

Also Read- Apple’s $999 PC Monitor Stand Creates Stir on Social Media: Report

The social networking giant has also set up a group within the company, headed by Messenger chief David Marcus, to explore Blockchain technology and its potential use for the platform.

Earlier in June, the company ignited a discussion about its crypto Stablecoin initiative with the US Commodity and Futures Trading Commission (CFTC). (IANS)

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Facebook’s Push to Become China’s WeChat May Kill it

As people become increasingly aware of social media’s harm, social media will lose its lustre

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FILE - The Facebook logo is seen on a shop window in Malaga, Spain, June 4, 2018. (VOA)

Facebook which accounts for 75 per cent of global ad spend that is likely to hit $110 billion by 2020 is nowhere near an immediate demise and government regulations would only strengthen the social networking giant in the short term, a new Forrester research has forecast.

However, Facebook’s push to become China’s WeChat — more than a messaging app and is full of capabilities to make life easier for its one billion users — would be its undoing.

Facebook‘s no-good-very-bad 2018 may have meant an overworked PR team but the social media behemoth is doing just fine.

It continues to report steady user and revenue growth: a 9 per cent year over year increase in users in Q4 2018 and a 30 per cent increase in revenue in the same time-frame.

“The three parties that could impact Facebook the most — users, brands and regulators — will move too slowly for it to feel any instant impact,” said Jessica Liu, Senior Analyst, Forrester.

The coming years won’t be easier, but the social media behemoth won’t suddenly collapse either, as many predict.

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FILE – The logo for Facebook appears on screens at the Nasdaq MarketSite, in New York’s Times Square, March 29, 2018. VOA

“But while Facebook’s short-term outlook might be fine, its long-term outlook is bleak,” Liu added

Despite constant negative news last year, Facebook continued to report strong quarter-

over-quarter user and revenue growth. Brands that mishandle their own users’ data and fail to inform them typically falter.

While these users and advertisers could affect change at the social media giant immediately, they won’t, thus allowing it to continue to defy the odds.

“Enacting and enforcing regulation takes so long that Facebook will be able to shore up its assets and unique advantages in the short term and eliminate any vulnerabilities before serious user, advertiser, or regulatory changes materialize,” Liu emphasised.

The social networking giant with over two billion users globally, is facing regulatory challenges as the Cambridge Analytica scandal has exposed its lapses of data privacy and security.

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FILE – A man poses for a photo in front of a computer showing Facebook ad preferences in San Francisco, California, March 26, 2018. VOA

The downfall for Facebook, said Liu, would come with its desire to build an all-inclusive social media experience, as its CEO mark Zuckerberg is planning to merge all apps like Messenger, WhatsApp and Instagram into one.

“Facebook’s hope to recreate WeChat, China’s largest messaging app turned all-in-one portal

to the Internet, presents long-term challenges,” Liu added.

WeChat primarily operates in a single country’s political and regulatory environment.

Also Read: South Korean Tech Giant Samsung Launches 2 New Tablets in India

“Facebook will need to tack on products and services to fulfill its one-app vision while global regulators threaten antitrust. It will also grapple with protecting user privacy globally while appeasing advertiser appetite for hypertargeting,” Liu noted.

As people become increasingly aware of social media’s harm, social media will lose its lustre.

“History has taught us that existing apps max out and then decline as users tire of the services or the company (like AOL, MySpace, Friendster). The Facebook app is already experiencing this; Instagram and WhatsApp will follow in a natural peak and then eventually decelerate, too,” Liu commented. (IANS)