Project Libra’s the Name, Crypto’s the Game

Facebook’s been tight-lipped about its blockchain venture, but someone’s teasing details. The WSJ has the latest sneak peek into Project Libra, FB’s codename for a crypto-based payments network.

What’s new: FB has reportedly approached dozens of online merchants and financial firms to help launch Libra. It’s seeking $1 billion to back the coin that’ll be used in the network.

• Remember, FB’s been staffing up to develop its own stablecoin, which is pegged to fiat currency to avoid the volatility and speculation made famous by your Coinbase wallet.

Next steps

CB Insights’s Nicholas Pappageorge, who recently dug into FB’s blockchain strategy, told me a centralized crypto play could let FB monetize more of its platform, become a quasi-bank, and diversify revenue streams from ads into e-commerce. It already has the scale and reach...and crypto could complement its encrypted messaging plans.

TBD: When it’s coming, what exactly the coin will be used for, and whether users, merchants, and vendors will utilize it. The “whole thing’s still experimental,” Pappageorge said, but it “could be big—enough to get people and investors interested.”