According to reports in the Wall Street Journal, Facebook is seeking $1 billion of investment to launch a cryptocurrency stablecoin. As part of ‘Project FB Coin’, Facebook are talking to Visa and MasterCard about potential support, along with First Data Corp.
FB Coin will primarily be designed to facilitate payments via a member’s Facebook profile, with Facebook allegedly talking with e-commerce companies and apps about accepting the coin.
From a loyalty perspective, Facebook may also pay members with FB Coin for viewing ads, as well as allow advertisers to accept the cryptocurrency for products. A natural extension of this will be the ability for companies to reward members with FB Coin bonuses for purchasing products and services.
This effectively mean the social media giant will launch the world’s largest loyalty program, with blockchain as the enabler. It will also mainstream cryptocurrency ownership globally.
With nearly 2.4 billion users, Facebook has the potential to achieve what no other organisation or government in the world can; a true global currency which transcends international borders and legacy financial systems.
The loyalty industry is highly innovative, especially amongst the major coalition programs, and Facebook will be able to borrow heavily from their many inventions to offer other opportunities for members to earn FB Coin. This includes Facebook-branded credit cards, retail partnerships, online affiliate malls and more. It will also deliver even more valuable data which the social media giant can monetise to grow its profits further.
FB Coin is something the world has never seen, and whatever it grows in to, one thing is certain; financial institutions, card schemes and major loyalty programs will grossly underestimate the impacts it will have on their businesses.
Philip Shelper is a loyalty management consultant based in Sydney, Australia who obsesses about everything to do with loyalty and rewards. His company Loyalty & Reward Co are a leading loyalty consulting firm.
Phil is the author of Blockchain Loyalty: Disrupting loyalty and reinventing marketing using cryptocurrencies. Buy the book.
www.blockchainloyalty.io is a global resource centre for everything blockchain loyalty.