The largest world social network is looking for venture investors who are willing to finance its project of stablecoin pegged to fiat currencies. Facebook allegedly needs $1 billion of VC funding.

The New York Times journalist Nathaniel Popper reported that his sources in the market told him that Facebook plans to attract $1 billion of VC funding to finance the launch of its stablecoin project.

According to Popper, with the help of outside funding, Facebook hopes to demonstrate that its stablecoin project is not totally centralized and not fully controlled by the social network.

“Given that one of the big allures of blockchain projects is the decentralization, getting outside investors could help Facebook present the project as more decentralized and less controlled by Facebook,” the journalist wrote on Twitter.

It is hard not to recall the recent comment of author of Mastering Bitcoin, Andreas Antonopoulos, who said that Facebook coin could never compete with bitcoin:

“Facebook will not produce a coin that is censorship resistant, open, decentralized, neutral, or borderless. It will not be similar to any cryptocurrency. They will recreate the world of digital dollars, just like PayPal and Venmo, etc. … They will be competing against other banks,” - Antonopoulos said speaking on his YouTube channel during a Q&A session.

Popper, citing one of his sources, added that Facebook intends to use the raised capital as collateral for its cryptocurrency. Earlier, Popper reported that Facebook planned to launch several stablecoins pegged to different fiat currencies, in order to ensure their fairly stable rate. For these purposes, Facebook is likely to need reserves in fiat currencies, which will be kept in bank accounts as collateral for its issued coins.

 

Facebook Coin is designed as a stablecoin for easy microtransactions through messaging services.

Facebook cryptocurrency will not compete with bitcoins, believes Kik messenger founder Ted Livingston. According to him, the main competitor of Facebook Coin is the US dollar.

"We think Facebook could be on a path to replace the US dollar as the global reserve currency," Livingston wrote in his Medium post.