Facebook is Allegedly Developing a Stablecoin
Citing anonymous sources, Bloomberg claims that Facebook is developing its own cryptocurrency for WhatsApp transfers. More specifically, they’re said to be developing a “stablecoin.” Unlike high profile cryptocurrencies like Bitcoin or Ethereum, which make up the bulk of the cryptocurrency market, Facebook’s cryptocurrency would be more akin to Tether, as it would be “pegged” to the U.S. dollar to minimize wild fluctuations. While the project is reportedly in the early stages of development, Bloomberg points out that the Facebook cryptocurrency could be a particularly useful platform for remittances. WhatsApp is apparently quite popular in India, for example, and the World Banks claims that “people sent $69 billion home to India in 2017.” Facebook gave a vague response to report, simply stating that they are “exploring ways to leverage the power of blockchain technology.”
Facebook is far from releasing the coin, because it’s still working on the strategy, including a plan for custody assets, or regular currencies that would be held to protect the value of the stablecoin, the people said. Facebook has long been expected to make a move in financial services, after hiring former PayPal president David Marcus to run its Messenger app in 2014. In May, Marcus became the head of the company’s blockchain initiatives, which haven’t been discussed publicly in detail. Facebook has been on a hiring spree, and now has about 40 people in its blockchain group, according to employee titles on LinkedIn.