Reports have emerged that WhatsApp’s parent company, Facebook, is busy assembling a digital currency that will be integrated on WhatsApp to facilitate money transfer using cryptocurrency.
According to Bloomberg:
“The company is developing a stable coin – a type of digital currency pegged to the U.S. dollar – to minimize volatility. 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 stable coin.”
Since the hiring of David Marcus, a former PayPal president, 4 years ago, anticipation has been high not on whether Facebook will be involved in the financials but on when it will do so. Marcus was in mid this year appointed to lead blockchain activities at Facebook. However, the details of Facebook’s blockchain activities including enabling money transfer using cryptocurrency, have remained scanty. Facebook has been assembling a small but strong team to work on the blockchain initiative.
A company spokesman noted that:
“Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications.”
Using WhatsApp to facilitate money transfer using cryptocurrency will first be rolled out in India. According to sources familiar with the developments, India has been chosen because it leads in remittances and the country has a huge WhatsApp user base.
If Facebook finally manages to use WhatsApp to facilitate money transfer using cryptocurrency, then it would be the first large technology company to launch such a project. With the experience the company has in handling regulatory concerns, a stable coin has higher chances of survival under Facebook’s stewardship.
Do you think facilitating money transfer using cryptocurrency can be a major breakthrough for WhatsApp and Facebook in general?
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