Facebook Is Developing Its Own Cryptocurrency For Transfers On WhatsApp – Facebook is reportedly working on a cryptocurrency that enables users of the messaging service WhatsApp, to transfer money. The plans are to focus first on the remittances market in India, according to Bloomberg on Dec. 20.
Further to the story in Bloomberg, it states that Facebook is developing a stablecoin. It is a type of digital currency pegged to the U.S. dollar — to minimize volatility. As early as possible, this coin will be released . Facebook is still working on a strategy for custody assets i.e. the asset to which the stablecoin will be tied.
“Facebook Is Developing Its Own Cryptocurrency For Transfers On WhatsApp – Likewise, the company is developing a stablecoin — a type of digital currency pegged to the U.S. dollar — to minimize volatility, said the people, who asked not to be identified discussing internal plans”
-According to Bloomberg
However, the Indian remittances market is critical. As per data from the World Bank, the country received nearly $69 billion dollars in foreign remittances in 2017, which is equivalent to 2.8 percent of the country’s GDP. The market of Whatsapp is vital, with increasingly widespread popularity in India: more than 200 million users in the country. As per the data, the number of users in rural India doubled last year as data and internet costs in the region declined.
After Facebook recruited former PayPal president, David Marcus, to run its Messenger app in 2014, . In May, Marcus became the head of the company’s blockchain initiatives. However, publicly it was not discussed. According to employee titles on LinkedIn, Facebook has been on a hiring spree. Apparently, it now has about 40 people in its blockchain group.
Facebook’s views on cryptocurrency have changed significantly over the last year. In January 2018, the social media network introduced a crypto ad ban, in which was stated that they intended to forestall “ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices.”
The previous year has seen a blast in crypto ventures related to stablecoins. At a certain point, there were in excess of 120 ventures related to stablecoins. This would be far easier to use on daily purchases. This is because it would be more stable than currencies like Bitcoin.
The idea has proven challenging to carry out in real life. A stablecoin known as ‘Basis’ recently closed after eight months. The Hoboken, said there was no apparent way around being classified as security as opposed to a currency. Which could significantly reduce the number of potential buyers. The swift collapse came after Basis drew well-known backers like Andreessen Horowitz and Kevin Warsh, a former governor of the U.S. Federal Reserve, which makes its demise quite unfortunate.