Facebook banned cryptocurrency ads earlier this year because they “often relate to misleading promotional practices. ” In spite of this, the network probably does not oppose the idea of using digital currencies, since it could develop itself. According to Bloomberg, the technology giant is developing a ” stablecoin ” that gives users the opportunity to transfer money via its encrypted messaging platform WhatsApp. Stablecoins are linked to the US dollar and are intended to be more, more stable and volatility resistant than Bitcoin.
After hiring former PayPal president David Marcus to run his Messenger app in 2014, Facebook has long been expected to make a move in financial services. In May, Marcus was the head of the blockchain projects of the company, which were not discussed in detail publicly. Facebook was hired and now has about 40 people in its blockchain group, according to LinkedIn employee titles.
Launch in India
Bloomberg says that Facebook is likely to launch the currency in India and test it by entering the massive payments market of the country. WhatsApp appears to have 200 million users in Asia, who received 69 billion dollars in transfers back in 2017. However, this enormous user base could be both a blessing and a curse: Facebook was found in trouble in India earlier this year after all the propaganda circulating through WhatsApp led to fatal lynching.
Last year saw a boom in stablecoin-related crypto projects. At one point, according to Stable, there were more than 120 companies related to this theme. The report, a website tracking stable tokens. The concept was developed to create a digital coin that would be much easier to use every day because it would be more stable than currencies like Bitcoin.
The idea has proved to be difficult to achieve in real life with at least one high – profile project that has been shut down in recent weeks. A stablecoin was recently closed after eight months known as the base. The company based in Hoboken, New Jersey. We’re saying that there was no apparent way to be classified as a security. Not like a currency that could significantly reduce the number of potential buyers. The rapid collapse occurred after Basis drew well-known backers such as Andreessen Horowitz and Kevin Warsh, a former U.S. governor. Fed. Federal Reserve.
Facebook, which has 2.5 billion global users, annual revenue of more than $ 40 billion. With more experience in regulatory issues, may have a better chance of creating a stablecoin. It would be the first large company to start such a project. Facebook still sees the country’s tremendous opportunities for growth. India has 480 million users, only second to China. According to Forrester Research Inc., the number of hats is projected to increase to 737 million by 2022.