According to its reliable source, Bloomberg reports that Facebook is building a cryptocurrency of its own. Initially, this cryptocurrency will be use for transferring money on its WhatsApp messaging app. The report also said that the main focus of the cryptocurrency will initially be on the remittances market in India.
Facebook was said to be in the initial state of developing a stablecoin which is going to be pegged to the U.S. dollar. This is to ensure minimal volatility. However, this may be far from fruition as of yet. Facebook was said to be still strategising and planning for custody assets and regular currencies that will protect the stablecoin.
Why WhatsApp and why focus in India? That’s because the mobile platform has more than 200 million users in India alone where remittances are also at the highest with $69 billion in 2017 according to the Bloomberg citing a World Bank report.
Perhaps this news may not be surprising to most people in the cryptocurrency market. In May 2014, PayPal president David Marcus was tasked to head Facebook’s blockchain initiatives. Currently, Facebook now has around 40 people employed in this initiative.
A Facebook spokesperson said in a statement that:
“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.”
So, will you be interested in partaking of this new cryptocurrency donning the Facebook insignia. Perhaps yes, depending on how stable this new cryptocurrency will be. With Facebook backing it up, were pretty sure it could gain leverage in short time. Or will it?