Social media giant, Facebook has lifted some restrictions on cryptocurrency-related ads on its platform. However, there are speculations that Facebook lifting the ban is a preparation for the launch of its Face Coin and its Project Libra.
Facebook Lifts Cryptocurrency Ad Ban
Over a year ago, social media giant, Facebook placed a ban on cryptocurrency and blockchain-related ads on its platform. However, the firm announced on May 8, that it would be relaxing its restrictions.
According to their blog post, adverts relating to cryptocurrency and blockchain would no longer need prior written approval. The ban lifting is for cryptocurrency industry news, educational content, and events relating to the sector.
However, Facebook maintains that ads which promote cryptocurrencies and similar products like crypto exchanges and cryptocurrency mining software would have to go through a review process before they are allowed to go live on the social media platform.
The company pointed out that for cryptocurrency and trading platform promotion on Facebook, they will continue to take into account licenses the crypto companies have, and whether they are traded on a public stock exchange. Also, Facebook would study their background on business before approving their ad requests.
Meanwhile, the social media giant would not be offering the same courtesy to token sales and initial coin offerings (ICOs). Facebook maintains that adverts relating to token sale and ICOs are still unacceptable on its platform.
Because of Project Libra and Face Coin
The social media company has been working on rolling out digital service for its platforms over the past months. Therefore, the lifting of the ban could be because of the Project Libra and Face Coin it could unveil in the near future.
In December last year, Bloomberg reported that Facebook is working on a cryptocurrency that would allow users to transfer value via its WhatsApp messaging platform. The cryptocurrency would be a stablecoin that would be pegged to fiat currency and would help create a remittance service for the company.
In addition to that, Facebook has been working aggressively on its Project Libra. The primary aim of this project is to create a digital currency that would allow Facebook users to make purchases on the platform. Also, users could also use the digital coin across the internet.
Project Libra would see Facebook venture into the payment ecosystem, and in the process rivaling companies like Apple and their Apple Pay system. To ensure that the project becomes a success, Facebook has been meeting with several potential investors such as Visa and MasterCard. Some reports suggest that Facebook is looking to raise $1 billion to actualize its Project Libra.
The development of the stablecoin for its WhatsApp messaging platform and another cryptocurrency for use on Facebook could be the driving force behind the company lifting the crypto ad ban. While Facebook has provided sparse details regarding its projects in the crypto space, it is clear that the social media giant is currently exploring ways to leverage the power of blockchain tech.