Facebook is planning to launch its own Cryptocurrency: Report

Facebook the Social media giant is planning to launch its own Cryptocurrency according to a Report from the Financial news outlet Cheddar. The report said that Facebook is very serious about this.

Facebook, however, has not made any official statements about launching its own cryptocurrency, although they had announced recently that they are launching a new team dedicated to Blockchain.

According to the report, Facebook might launch its digital token which can be used by its users to facilitate transactions without the need for Fiat money. They are also looking for various other applications of the Blockchain technology in their platform.

The Blockchain team in Facebook is being led by David Marcus. David was the president of Paypal and has a lot of experience in payments. He also joined as a board of the biggest exchange in the US – Coinbase. He is also said to be an early Bitcoin investor and an outspoken advocate of Cryptocurrencies.

Here are the ways Facebook could use blockchain for:

1. A Payments system in their platform (the marketplace on the site to buy and sell goods)
2. As an ID verification system.
3. Accounts and backend infrastructure.
4. User sovereign data (Although this seems unlikely as it goes against their business model).

Alex Heath a reported in Cheddar said:

“Sources say that Facebook is specifically interested in creating its own digital token, which would allow its more than two billion users to facilitate transactions without government-backed currency. Facebook is also looking at other ways that it could use this core blockchain technology that underpins these popular cryptocurrencies like Bitcoin and Ethereum.”

Facebook doesn’t have plans do an ICO and take other routes like Airdrops to distribute the tokens according to the reporter Alex Heath. They will also make strategic acquisitions along the way, although this might take years to materialize.

Facebook told CNBC:

“Like many other companies Facebook is exploring ways to leverage the power of blockchain technology. This new small team will be exploring many different applications,”

The other internet giants that have already set their foot in launching their tokens are Telegram which has raised $1.7 Billion already in private sales and the messenger giant Kik which has issued its native token Kin.

Facebook has over 2 Billion users and introducing a cryptocurrency in their platform would be a huge deal in the Crypto space and will lead to widespread adoption.

Cheddar Tweeted:

Alex Heath Tweeted:

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