Facebook likely working on cryptocurrency for WhatsApp transfers: Details here
Facebook, the largest social media company in the world, is said to be working on its own cryptocurrency to expand its presence in the remittances market. People familiar with the giant's internal plans have told Bloomberg that the currency is being developed for enabling seamless money transfers on its WhatsApp messaging service. Here's more on the possible move.
Facebook is working on stablecoin, sources claimed
The sources, who asked not to be identified, claimed that Facebook is working on a stablecoin, a type of digital currency designed to minimize price volatility. It could be pegged to the US dollar, which will make it more stable than cryptocurrencies like Bitcoin. This way, Facebook may offer a digital coin that would be easier to use in day-to-day WhatsApp transactions.
And, first focus would be on India
The coin is still in the works, but when ready, India could be the first country to see crypto-based WhatsApp transfers. The sources claimed that Facebook is focusing on the remittances market in India, which has over 200 million WhatsApp users. Notably, WhatsApp already enabled UPI-based payment capabilities in India and this could be an extension of it.
However, there's no timeline for the launch
Facebook's idea to bring a crypto-based money transfer facility in India highlights the growth opportunity it sees in the country. However, thus far, there is no word on when the company would go ahead launch the stablecoin. Sources claimed it is far from release as it's still ironing out details like custody assets or currencies that would be held to protect the coin's value.
Statement from Facebook spokesperson
"Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology," a Facebook spokesman said in a statement. "This new small team is exploring many different applications. We don't have anything further to share."
