Facebook is going to act as a “dramatic catalyst” in the adoption of cryptocurrency according to a partner at venture capital company, Blockchain Capital.
Spencer Bogart gave an interview to Bloomberg during which he discussed the news that Facebook is planning to launch its own cryptocurrency that will be used both in and out of Facebook.
The popularity of the social media platform, which has over 2 billion regular users, means that by integrating crypto into it cryptocurrencies can expect a big boost in terms of adoption and acceptance. In addition to this Bogart said he believes that the familiarity of Facebook will make it much easier for people to adopt the concept of digital asses.
Bogart also believes that once people become familiar with the Facebook coin, “some percentage of the base” is likely to go on to explore other cryptocurrencies such as Bitcoin or Ethereum. He even went as far to say that he believes we could see a doubling or tripling in the user base of cryptocurrency, in just a couple of years.
The Facebook token is widely expected to be launched as soon as the next quarter, or end of the year, if various “sources” that claim to be familiar with the project are believed.
According to rumours the new coin will first be tested in India, and it is possible that it could eventually be used to transfer money via remittances on WhatsApp through the use of stablecoin. In addition to this, there is speculation around integration with PayPal as around 20% of Facebook’s blockchain team, used to work for the payments giant. The specialist blockchain unit is headed by David Marcus, the former president of PayPal.
Whilst much of “Project Libra” is still under-wraps, the news is out that Facebook may have been in talks with Mastercard and Visa, as well as a payment processing company called First Data- all of which are apparently part of the preparations for launch.
According to Bogart, another important aspect of the Facebook digital coin is the fact that it is expected to prompt reactions from a number of FinTech companies.
Already there are speculations that TD Ameritrade and E*Trade are preparing to launch brokerage services for their retail clients, and just this week Fidelity Investments launched its own bitcoin custody service. It is also preparing to start offering Bitcoin trading over the next few weeks.
There is no doubt that the introduction of a cryptocurrency on the world’s largest social media platform will have a significant impact on the public perception of cryptocurrency. Whilst more are more members of the public are considering dipping into cryptocurrency ownership, there are still some that remain cynical of its safety and application. By partnering with a big household name such as Facebook, crypto gets a huge dose of credibility and the potential base of users it could sway, increases dramatically.