With so much scrutiny on social media platforms to be more transparent, it was learned on May 3 that Facebook received a trademark patent for their new Libra project.
While the announcement of the trademark may be new news, that Facebook was working on such a project was not surprising at all. They had introduced plans to build a payment system for those who wanted to use cryptocurrencies quite some time ago. They had been looking to receive about $1 billion in investments, which would be used to protect their own digital currency.
The digital currency market has been a key focus of the social media giant. Since beginning development on Facebook Coin, their own digital currency, they have looked to find investors to back the currency, protecting it from the volatility of the cryptocurrency markets. Plus, it would open the door for them to be able to acquire other cryptocurrencies using the payment processing system.
Libra will be the key to this new venture. Facebook had sought the trademark for Libra since June of 2018, and that was finally granted by the U.S. Patent and Trademark Office. What is interesting about the trademark acquisition is that it was actually held by a crypto tax company until being acquired by Facebook.
With trademark in hand, Facebook looks ready to move to the next phase of the project. They are already in negotiations with Visa and Mastercard to be part of their payment platform. These are the two biggest payment processing companies, and it would clearly be to Facebook’s advantage to be closely associated with them to use the technology that is available to create a more successful environment.
However, the payment processing is just a piece. The big news will be the Facebook Coin, which the company hopes will increase its presence on the internet. Right now, their primary focus is on decreasing the volatility that is often found with these digital currencies.
One such example is Bitcoin Core (BTC), which saw its value rise from about $900 at the start of 2017 to $17,000-plus by November of that year. Yet, it fell to less than $4,000 13 months later. Facebook is looking to avoid that kind of volatility, looking to rise in value but not wanting the ups and downs that some other currencies have endured.
The question now becomes when Libra will be ready to go. Some speculation has them ready by 2019, with their new coin entering the market then, but there is no confirmation of that report. One thing that can be sure is that Facebook has traditionally been ahead of the curve when it comes to new technology and new ways of reaching people, so this new venture may not be far away.
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