Social media giant Facebook’s on-again, off-again relationship with cryptocurrency continues. It is now considering introducing its own cryptocurrency, as reported by Alex Heath on the business news website Cheddar.
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Facebook’s Crypto Venture
According to the report, Facebook is assessing the advantages of issuing its own digital currency. Citing anonymous sources, the company is considered to be “very serious” about the idea and has asked its blockchain research arm to look into introducing its own cryptocurrency.
The Cheddar news outlet tweeted:
SCOOP: Facebook is exploring the creation of its own cryptocurrency to facilitate digital payments for its two billion users.
— Cheddar (@cheddar) May 11, 2018
Although it is not the first time the notion of a “Facebook Coin” has surfaced on the web, this time the idea seems to have more credibility. The social networking behemoth recently restructured executive positions to form a new blockchain group. The new group will be led by David Marcus, previously vice president of Facebook’s Messenger Group.
Prior to his appointment, Marcus was president of online payment company Paypal. In December, he joined the board of the United States’ biggest crypto exchange Coinbase. Facebook’s cryptocurrency interest appears closer to becoming a reality, given Marcus’ experience in the field of finance and cryptocurrencies. The newly formed blockchain group will also explore how blockchain technology can help with identity verification and advertising sales.
Facebook Bigger Than the Entire Crypto Market
The company’s entry into the crypto arena could be significant, given its over two billion active users. At the time of writing, Facebook’s market cap is around $540 billion USD according to ycharts, almost $200 billion more than the market cap of the entire crypto space.
A spokesperson for the company told CNBC:
“Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new small team will be exploring many different applications.”
Anonymous sources reveal that the notion is still in the preliminary stages and not much information has emerged. It is also likely the crypto venture could take years before being released.
Cheddar also revealed that Facebook has no plans to hold an Initial Coin Offering (ICO). The embattled company is yet to publicly acknowledge entertaining a crypto venture. There is a range of possibilities of how the social media giant could introduce its digital currency. If it does plan to offer its two billion users the facility to transfer a native cryptocurrency, it could change the way money moves around the globe.
Recently, cloud-based instant messaging service Telegram abandoned plans to create a Telegram Open Network, which was to be funded by a $1.7 billion ICO.
Will Facebook introduce its own cryptocurrency? If it does, would you use it? Share your views in the comments section below.
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