Facebook Inc. currently is developing a cryptocurrency stablecoin specifically for WhatsApp. With that users will be able to transfer money exclusively within the app, reports Bloomberg. The initial target audience is set to be India.
Facebook financial services
Ever since Facebook hired the former PayPal president David Marcus to work on their messaging app, people have been curiously waiting for the outcome. Also, Facebook recently hired about 40 blockchain specialists to work in their Blockchain group, which now makes sense. Maybe this has something to do with David Marcus. However, Facebook Messenger already has a built-in cryptocurrency payment service. A company called Lite.IM has made it easy for users to send and receive Litecoin within the messenger app.
Facebook bought WhatsApp in 2014 for a shocking $19 billion price, citing Forbes. They must have significant plans for the future, after a deal like 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,” stated a company spokesman.
Facebook user count
Facebook currently claims that they have 1,45 billion daily active users and 2,20 monthly active users. These numbers are just staggering! On the other hand, 2017 Q4 reports show that WhatsApp has 1,5 billion users and 60 billion messages sent every day. Talking about mass adoption, this is what many cryptocurrency enthusiasts have speculated about. If Facebook with its user-base implements a cryptocurrency, then it could become a top asset within days.
Controversy over stablecoins
Today is a time when we have a stablecoin for almost every fiat currency in the world, including gold, silver, and other derivatives. Many believe that currently, that is the safest way how to spend your crypto. Stablecoins are not that volatile and can presume the value of your money. However, there is a lot of controversy over the topic of stablecoins. Especially, Tether. Tether is a cryptocurrency, which is pegged to the US Dollar. Bloomberg reviewed statements from four separate months details over the cash flow in Tether Ltd.’s accounts. It showed that on January 31st Tether had $2,2 billion in their report in Puerto Rico’s Noble Bank. On the very same day, they had 2,195 billion tokens in existence. The numbers match, but many believe that Tether is a scam. One of the reasons – a cryptocurrency exchange Bitfinex is owned by the same executives. Previously the company refused to do an audit.
It is believed that Facebook might be the best company so far for stablecoin development. “Facebook, which has 2.5 billion global users, more than $40 billion in annual revenue and greater experience navigating regulatory issues, may have a better chance of making a stablecoin that sticks,” writes Sarah Frier in her article.
If Facebook develops a stablecoin for WhatsApp, then why wouldn’t they use it in connection with Facebook? That opens the door to a lot of new crazy ideas and means that their asset will quickly become very popular. The question is whether Bitcoin and other cryptocurrencies will be available for transfer. Also, this was one of the issues a lot of disputes have been about. If Facebook and its users create a cryptocurrency, it could take over the crypto-market by seconds. Is that good or not, we don’t know. But one thing is for sure. It would be a lot easier to send crypto to your grandparents and relatives during Christmas time.
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