Facebook Poised to Create 'e-Money' in Possible Competition to PayPal, Bitcoin

Facebook Poised to Create 'e-Money' in Possible Competition to PayPal, BitcoinThe social network giant Facebook wants a piece of the digital currency space as bitcoin businesses are sprouting quickly and across the globe.
But Facebook’s foray into something called “e-money” in Europe may give PayPal more immediate competition.
The Financial Times reports that Facebook is near regulatory approval in Ireland for a service that would allow the social network’s users to store money via Facebook and use it to pay and exchange money with others.
The go-ahead from Ireland’s central bank to become an “e-money” institution would allow Facebook to issue units of stored monetary value. This e-money would be valid throughout Europe via a process known as “passporting”, FT reports.
Facebook has also discussed possible partnerships with at least three London start-ups that offer international money transfer services online and via smartphones: TransferWise, Moni Technologies and Azimo, FT said.
But are people willing to trust Facebook with money, considering concerns about personal data mining by the social media network to push advertising on the site.
The bitcoin community doesn’t exactly see Facebook as a direct competitor, despite its brand value. The reason, reports CoinDesk, is that Facebook is still relying on the same infrastructure of companies like MasterCard and Visa for payments, says Wedbush Securities managing director Gil Luria.
“The type of innovation coming from bitcoin technologies is a leap that will take time for these mainstream companies to adapt to, so I doubt anything Facebook can do right now goes much farther than a prepaid account funded through existing payment networks,” Luria told CoinDesk.

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