BY MARKO VIDRIH: Stablecoin, the development of which, presumably, is engaged in the social network Facebook, will form the basis of the new payment network, writes The Wall Street Journal.

According to the publication, Project Libra – this is the internal name for the company’s blockchain initiative – will use stablecoin, backed by fiat currency. According to sources, Facebook recruiting financial firms that can support the project.

In addition, Facebook expects to launch a full-scale payment system, rather than just a “tool” for making money transfers, and is in talks with payment networks Visa and Mastercard, processing services such as First Data, and e-commerce giants to support the launch of the project, sources said.

As previously assumed, the social network may try to raise $1 billion from such companies in order to use these funds as collateral for its assets.

Using stablecoin of the Facebook payment system will eliminate the high commissions associated with making transfers through traditional channels and the volatility associated with Bitcoin and other cryptocurrencies.

Tests of a stabelcoin can be carried out using the Facebook advertising system by rewarding users for viewing ads and purchasing goods in the same way as the more common loyalty points work on the basis of points.

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