Facebook Uses Cryptocurrency, Helping Users Transfer Money On Whatsapp

Facebook Inc. is currently planning to use cryptocurrency to let its users transfer money on Whatsapp.

Facebook heads towards developing a stablecoin to minimize volatility. The release of the coin is yet far as they’re still working on the strategy. Facebook is expected to move towards financial services after hiring the former PayPal president David Marcus to run its messenger app. Marcus became the head of the company’s blockchain initiatives, although this is not disclosed yet.

They have been on hiring binge. According to employee titles on LinkedIn, around 40 people are in it’s blockchain group. A company spokesman said in a statement

Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications. We don’t have anything further to share.

Facebook’s encrypted mobile-messaging app, Whatsapp is one of the popular app in India with 200 million users. India also leads the world in remittances. According to the World Bank, people sent $69 billion home to India in 2017. The year 2017 was booming in crypto projects related to stablecoins. Also at a certain point there were more than 120 ventures related to this theme. Stable.Report, a website useful to track stable tokens was helpful in tracking the data.

This concept was helpful in creating a digital coin which was quite easier for daily purchases. This is because it was more stable than other currencies like bitcoin. But this idea is tough to be applicable in real life. As a stablecoin, called Basis shut just after eight months. New Jersey-based company, Hoboken said there was no apparent way for being classifies as a security as opposed to a currency that could reduce the apparent number of potential buyers.

Although Tether is the most high-profile stablecoin till date, it also has controversies. Also Facebook which has 2.5 billion global users that is more than $40 billion in annual revenue, experience navigating regulatory issues. It may also have a better chance of making a stablecoin that sticks.  Hence facebook accounts to be the first large technology company to launch such a project. Currently, India has 480 million internet users, just second to China. And this number may increase to 737 million by 2022, as per the Forrester Research Inc.

What do think about this new step taken by Facebook? How well can it attract people? Share your thoughts in our comments section. 

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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