For the last few months, Facebook has been hard at work trying to gain regulatory approval for the upcoming libra token but the company has faced a few setbacks in this regard. Several regulators have publicly denounced libra as many fear its possible application for criminal activities, undermining economic sovereignty and so on. While libra has been successful in bringing the conversation about cryptocurrency to the forefront of the financial world, it has also exposed how difficult the road is for cryptocurrency in terms of regulation.
Regardless of the setbacks, Facebook appears to be moving forward as on November 12, 2019, the company launched a new fiat payment system called Facebook Pay.
This new system helps with fiat payments across Facebook’s many platforms such as the Facebook platform itself, Messenger, Instagram, and WhatsApp.
“People already use payments across our apps to shop, donate to causes and send money to each other. Facebook Pay will make these transactions easier while continuing to ensure your payment information is secure and protected,” said Deborah Liu, VP, marketplace & commerce at Facebook.
In the official announcement for Facebook Pay, it was made clear that this is separate from the Libra token and the Calibra wallet and it was emphasized that it is built on existing financial infrastructures. This is likely in an effort to avoid even more scrutiny and make it publicly clear that this system is in line with already laid down structures and is not trying to create new ones.
Facebook Pay will roll out in the United States over the next week and will facilitate payment such as “fundraisers, in-game purchases, event tickets, person-to-person payments on Messenger and purchases from select Pages and businesses on Facebook Marketplace.”
The announcement also states that this new system will help businesses grow and empower them to sell things online in an efficient manner. It certainly seems that Facebook is casting a wide net in terms of entering the financial industry and while they try to get the cryptocurrency sector off the ground, they will be happy to explore fiat currency. This new project could also serve as a testing ground for user payments ahead of Libra’s launch.