Facebook might launch its own cryptocurrency in the future
According to reports, Facebook is contemplating creating its own cryptocurrency. It purportedly wants to develop a virtual token that will allow users to make electronic payments across its various services. However, the company will not go the initial coin offering (ICO) route by offering a limited amount of virtual money at a set price. Also, these plans could take years to implement. Here's more.
Facebook started studying blockchain almost a year ago
A member of Facebook's corporate development team Morgan Beller began studying blockchain technology and its possible integration with the social media platform a year ago. Besides being essential to develop cryptocurrency, the digital and decentralized ledger could also help Facebook verify user accounts and encrypt data. However, Facebook will probably need to make acquisitions in the blockchain and cryptocurrency space to gain full expertise.
New team explores how to best leverage blockchain across Facebook
Now, it's being reported that Facebook has established a new team of less than a dozen employees dedicated to exploring blockchain-powered solutions for the company. It will be led by David Marcus, who was heading the Messenger unit until recently. Marcus is an early Bitcoin investor and also on the board of Coinbase, which is a popular cryptocurrency exchange.
Facebook open to experimenting with blockchain
Facebook CEO Mark Zuckerberg had earlier said, "[M]any people now believe technology only centralizes power rather than decentralizes [sic] it. There are important counter-trends to this—like encryption and cryptocurrency—that take power from centralized systems and put it back into people's hands.
Facebook has experimented with virtual currency before
In 2009, Facebook launched Facebook Credits, a virtual currency that could be used to purchase virtual goods in Facebook games like Farmville. It didn't really gain traction and was shut down in 2011.
