Facebook (NASDAQ:FB) announced that the social media giant is taking on credit card companies with its new cryptocurrency, which it has been discussing since 2018.
The Menlo Park, Calif.-based social media giant said last year that it was working on creating a digital currency that is backed by the U.S. dollar, which would allow users to send and receive payments using the Facebook-owned messaging app WhatsApp. It sounds like the currency will be called “stablecoin.”
The social media site has been working on ironing out a number of deals with online merchants and financial firms with the goal of reeling in more support for the brand’s cryptocurrency platform. The idea in question has been moving forward under the codename Project Libra for more than a year.
Facebook reportedly created the system with the goal of facilitating personal transfers and purchases on and off its platform. The goal is to create a system that can be used as a checkout option that’s similar to PayPal and Apple Pay, available to anyone who makes purchases in the internet.
The social network is reportedly seeking to raise roughly $1 billion for Project Libra from major credit card businesses such as Visa and Mastercard. Facebook’s service will also reward users with fractions of a coin for viewing ads or shopping on its platform.
FB stock is up about 1.4% on Friday off the heels of the company’s cryptocurrency news.