The popular and recently-controversial social networking platform Facebook reportedly has a digital currency being developed behind the curtains. While many in the industry still doubt Facebook’s ability to dominate the crypto industry, countless others have positive speculations for the crypto token. According to a report issued by Ross Sandler, an internet analyst at Barclays, Facebook’s digital coin could result in adding billions of dollars in the annual revenue of the company.
The analyst has estimated that “Facebook Coin” – as the digital currency will probably be titled – could result in an addition of up to $19 billion in Facebook’s revenue by the year 2021. Sandler also believes that Facebook’s share prices will also take a turn for good with within this timeline.
According to the original article by CNBC, the analyst gave a full scale with the lowest and highest possible estimates according to his calculations. According to Sandler’s prediction, even if Facebook was unable to capitalize to the highest estimate of $19 billion, the company would at least be able to add $3 billion to its yearly revenues within the same timeline. Even on the lower side of the scale, the addition is impressive and could help Facebook regain its former glory and possibly even surpass that point.
According to a report published by the New York Times, Facebook will initially sell its stable-coin through WhatsApp, the company’s immensely popular instant messaging application. The social networking giant itself hasn’t revealed any details about the digital coin or its plans to launch it.
If there is even the smallest chance of Sandler’s analysis being correct, Facebook will benefit greatly with the launch. The company’s stocks have taken a huge hit after the Cambridge Analytica scandal. An addition to the revenue in the scale of billions could help Facebook regains its success in the stock exchange and possibly even outrun Apple stock.
Sandler also mentioned in his report that an addition of a native payment method will surely allow more premium content to make its way on the website. The analyst wrote for nature of the digital coin, “Based on our checks, the first version of Facebook Coin may be a single purpose coin for micro-payments and domestic p2p money transfer (in-country), very similar to the original credits from 2010 and Venmo today.”
The mentioned “credits from 2010” is also an interesting part of the company’s history. In its early attempts of creating an “electronic cash” that would be used for payments on the network, the social networking giant created “Facebook credits”. The time was still very early for any sort of digital currency to thrive and the project was ultimately scrapped. This time around, however, Sandler believes that Facebook will find much more success as it has assembled a powerful team of blockchain and payments processing experts including the former president of PayPal David Marcus.