FP Explainer08 Apr, 2022 17:29:25 IST
After abandoning its cryptocurrency venture called Diem, Meta, the parent company of Facebook and Instagram, plans to launch virtual currency in its apps, known internally as “Zuck Bucks”.
It has been said in a report Financial timesThe goal of the social media community is to use the virtual token for reward creators, lending and other financial services.
While it’s still in its infancy, Jukebox News comes at a time when Meta is expanding its services around Metaverse, a virtual environment where people communicate, work and play.
Let’s learn more about Virtual Currency, Juke Box:
What is a juke box?
Apparently named for Meta founder, chairman and CEO Mark Zuckerberg, the jukebox is less likely to be a cryptocurrency.
Reported by Financial times Suggests that the meta is probably leaning towards in-app tokens that will be centralized by the company.
An example of such a currency is Robux which is used in the popular children’s game Roblox or V-Bucks in Fortnite.
According to the report, Meta Virtual Tokens may not be intended for Metaverse and based on blockchain technology.
Like Roblox, Zuck Bucks could give Meta a new revenue channel and control transactions in its apps, including Facebook, Instagram, WhatsApp and Meta Quest virtual reality platforms.
In-app tokens can probably be used to pay creators on Instagram or reward people who make meaningful contributions to Facebook groups.
The company is also looking at traditional financial services such as small business lending.
It has been said in a report CNETA Meta spokesman said the company was constantly considering new products.
“As a company, we focus on building metavers and that includes what payments and financial services might look like.”
Facebook’s first venture into financial services
In the early years, social media platform Facebook introduced credits in 2009 to facilitate in-app purchases on games hosted on websites like FarmVille.
Although it was initially successful, Facebook credits closed after four years when international payments became a headache due to fluctuations in exchange rates.
The company’s recent cryptocurrency efforts also broke down when regulators closed the platform’s bid to launch a stablecoin linked to the US dollar.
In 2019, Facebook announced Libra, a cryptocurrency backed by several international currencies, however, it faced criticism from politicians and central bankers that it would weaken existing currencies.
As several of its partners left the project, Facebook rebranded Libra to Diem in late 2020. The cryptocurrency project came to a halt after several congressional hearings and the departure of high-profile activists.
Dime CEO Stuart Levy said in a press release that the sale decision was made “after it became clear from our conversations with federal regulators that the project could not proceed.”
Including input from companies
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