Social media mammoth Facebook is building up a digital currency that will be pegged against the United States dollar and is expected to be traded on Facebook-possessed WhatsApp, as per numerous sources cited by the New York Times.
Apparently, social media platforms like Facebook, Instagram, Signal are discussing with various crypto exchanges that they are intending to launch digital currencies in the next. The end goal of this new move is to enable users to send money to their contacts through apps.
Facebook plans to revamp its messaging infrastructure and integrate its three wholly-owned apps — WhatsApp, Messenger, and Instagram — under one structure. This is set to provide a future crypto-token with a combined network of 2.7 billion users who use the three services each month.
An integration of crypto-powered payments system within a messaging system is an innovative business idea that is being pursued by many global messaging giants, such as Korea’s Kakao, Line in Japan, and Russian-developed Telegram.
Facebook started working on its Blockchain project led by ex-PayPal President David Marcus immediately after Telegram raised approx US$ 1.7 billion in two private initial coin offering (ICO) rounds for its forthcoming token and blockchain platform namely Telegram Open Network (TON).
Facebook has employed 50+ engineers to develop its crypto coin that is going to be a fiat-pegged stablecoin. Its crypto coin will be tied to the value of three different national fiat currencies which will give it an unprecedented level of exposure. Though it may face the same technological limitations and regulatory hurdles that have beset stalwart cryptocurrencies such as Bitcoin (BTC), Facebook has already begun shopping the “Facebook coin” on a few crypto exchanges.
As Facebook makes besets into crypto space, it will definitely retain the level of control over its cryptocurrency. This will make it harder for Facebook to profit off their project as decentralization is the Blockchain technology.
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