Facebook to develop cryptocurrency for money transfer on WhatsApp: Report
One of the most popular social media sites in the world, Facebook will reportedly come up with its own cryptocurrency. The coin will allow users to transfer money on its messaging app – WhatsApp.
According to a Bloomberg report, the company is working on a stablecoin – digital currency pegged to the U.S. dollar. Sources told the media outlet that the idea of developing of stablecoin is to minimize the volatility and with this, the company aims to focus first on the remittances market in India.
The company’s encrypted mobile-messaging app, WhatsApp, is popular in India with over 200 million users. Also reportedly, in remittances, India leads the world as people sent $69 billion home to India in 2017, the World Bank mentioned this year.
Though the report also suggests that Facebook is not releasing the coin anytime soon since it is still on the initial stage and is working on the strategy. It includes custody assets or regular currencies plan with the intention to protect the value of the stablecoin.
“Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology,” a company spokesman said in a statement. “This new small team is exploring many different applications. We don’t have anything further to share.”
The company’s move into financial services has been long expected since it hired former PayPal president David Marcus to run the Messenger app in 2014. The company has also been on a hiring spree, and now has around 40 people in its blockchain group, according to LinkedIn.
Facebook has around 2.5 billion users all over the world with over $40 billion in annual revenue. And, it would be the first major technology company to launch a project like this. The company sees a great growth opportunity in India as it has 480 million internet users, second to China.
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