It is rumored that Facebook is developing a cryptocurrency which will handle money transfers via its WhatsApp messaging application. Supposedly, the cryptocurrency will be a stablecoin pegged to the US dollar, as it has to be suitable for transactions in terms of volatility and price stability.
It is rumored that Facebook is developing a cryptocurrency which will handle money transfers via its WhatsApp messaging application. Supposedly, the cryptocurrency will be a stablecoin pegged to the US dollar, as it has to be suitable for transactions in terms of volatility and price stability.
By choosing a stablecoin, that is a coin pegged to the USD, as its cryptocurrency model, Facebook aims to minimize volatility and increase price stability.
Facebook’s cryptocurrency: unexpected?
Facebook has been making constant moves in the industry, and entering the blockchain field was expected by many. After hiring former PayPal president David Marcus to run its Messenger app in 2014, Facebook hired over 40 blockchain professionals, according to LinkedIn biographies of the people hired.
The company will presumably try the Indian market first. WhatsApp, the company’s encrypted mobile-messaging app, is extremely popular in India, with more than 200 million users. The country also leads the world in remittances, as people sent over $69 billion home to India in 2017, according to the World Bank.
By choosing a stablecoin, that is a coin pegged to the USD, as its cryptocurrency model, Facebook aims to minimize volatility and increase price stability.
While the company which has more than 2 billion active users is far from actually releasing the coin, we are optimistic about the prospects.This could have a huge impact on the industry as a whole.
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