After having a disastrous year with multiple data breaches and internal conflict reports, Facebook is reportedly working on its cryptocurrency to facilitate payments in WhatsApp.
According to a report by Bloomberg, Facebook is developing a digital currency that will be pegged against the U.S. dollar for price stability, according to some people aware of the developments. With its cryptocurrency, Facebook will initially focus on markets like India, where the digital transfer of money is on the rise.
There is much time left before the digital currency will be launched as the social media giant is still deciding the strategy on how to protect the value of the stablecoin. The strategy would include a plan for custody assets or regular currencies for minimizing the volatility.
Facebook’s entry into the financial services is long overdue after it recruited the former Paypal president David Marcus in 2014 who currently manages the company’s blockchain projects.
The social media platform wants to harness the power of blockchain technology and make money out of it. According to a Facebook spokesperson, “Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology.”
WhatsApp is a popular messaging app in India with more than 200 million users. Facebook wants to capitalize on the fact that India is the leading country in the world when remittances are considered. According to a report by the World Bank, Indians living abroad sent $69 billion back to the country in 2017.
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