Stellar & Facebook partnership: To be or not to be, that’s the question 20837
News
Madhurima Roy
Aug 11, 2018 at 7:00 PM

Social media giant, Facebook is reportedly in talks with Stellar, an open platform for building financial products, as it appears to be considering its entry in the banking sector. Stellar that aims to ‘develop the world’s new financial system’, is one viable option for Facebook.

But, how is the partnership between the two shaping up?

To be a Stellar partner

Business Insider reported that the potential partnership will help to build a Facebook variant of a Stellar blockchain.

An official from Stellar told Business Insider that the partnership discussion, which is still at its earliest stage, would make sense for Facebook to record payment transactions on a distributed ledger like Stellar. Other merchants could then connect to a Stellar-based ledger. Such a platform could compete payments network that connects banking institutes and lets for money transfers.

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"They'd be taking the rug out from under the banks. They can add a bank more quickly than a bank could build a social network," the insider said.

The probable partnership has already had its effects of Stellar, as its cryptocurrency, Lumens, has seen almost a 10% surge in its price on Binance, the world’s largest crypto exchange (according to Coin Market Cap).

Not to be a Stellar partner

While Business Insider’s story indicated that the two companies are in the process of striking the collaboration, Cheddar’s 11th August report, stated something entirely opposite to that.

As per the report, a spokesperson from Facebook said the social media platform is “not engaged in any discussions with Stellar", and they are "not considering building on their technology". Thereby, the whole question of partnership became futile and irrelevant.

SEE ALSO: Binance doesn’t list “shitcoins” even if one pays “400 or 4,000 BTC”, here’s why

Facebook and its blockchain journey

Although it is too early to conclude about the Stellar-Facebook partnership, as no definite statements have been officially issued, but it is definite that the social media giant has taken its steps towards its blockchain adoption. The use of blockchain could help the company compete with the payments network of other banks.

As pointed out by Business Insider, Facebook in its job ad said the job "is a startup within Facebook, with a vision to make blockchain technology work at Facebook scale and improve the lives of billions of people around the world" - stating the company has taken up blockchain rather seriously.

 

Image via Shutterstock

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