Facebook Inc. is working on creating a cryptocurrency that will allow users to transfer money using the WhatsApp application, Blomberg reports, citing a source familiar with the situation.
The source claims that Facebook is developing a stablecoin tied to the US dollar to minimize volatility when making remittances. Nevertheless, it is noted that Facebook is still far from the official launch of the coin, as the company is still working on strategy and monetary policy, as well as working on mechanisms for storing assets. It is reported that first of all Facebook will pay attention to the market of remittances in India.
Facebook has long been expected to have a financial services product associated with cryptocurrencies and blockchain. The first hint at the beginning of the implementation of such an initiative was the recruitment of the ex-president of PayPal, David Marcus, who later headed the department to create blockchain solutions for the company. At the moment, Facebook has at least 40 people involved in development in the blockchain area, it follows from the list of successfully closed Facebook vacancies on LinkedIn.
WhatsApp is a Facebook-owned messenger that is very popular in India. Over 200,000,000 Indian citizens are users of this application. The country also leads the world in terms of non-cash and international money transfers – in 2017, citizens of the country carried out transactions worth $ 69 billion, sending money from abroad.
Facebook, which has a base of 2.5 billion users worldwide, more than $ 40 billion in annual revenue, as well as extensive experience in the context of the implementation of regulatory prescriptions, has every chance of creating a reliable stablecoin. Facebook may be the first major technology company to implement a similar project.