Facebook is working on a cryptocurrency for WhatsApp transfers

According to a source quoted by Bloomberg, Facebook Inc. is developing a cryptocurrency that would enable WhatsApp users to transfer money via the messaging app.

The source familiar with the matter claims that Facebook is working on a stablecoin. In order to minimize its volatility, the company’s developers are goiong to tie it to the U.S. dollar. The official launch of the coin is still some way off, however, as Facebook is yet to finalize the drafting of the related monetary policy and strategy together with asset storage mechanism. The company’s primary focus will reportedly be on the remittances market in India.

Facebook users have long been anticipating the launch of a financial product in the sphere of blockchain and cryptocurrencies. The company first outlined its initiative by hiring the former president of PayPal David Marcus, who was made the head of blockchain initiatives for Facebook. By now, Marcus leads a blockchain development group of at least 40 people, as can be seen from employee titles on LinledIn.

“Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology,” – a company spokesman said in a statement. “This new small team is exploring many different applications. We don’t have anything further to share.”

WhatsApp is Facebook’s encrypted messenger which is widely popular in India. Its user base comprises 200 million people here. The country also ranks first in the world by remittance volumes, given that people sent $69 billion in 2017 alone.

With 2.5 billion users around the world, Facebook’s annual revenue exceeds $40 billion. The company stands a good chance of launching a reliable stablecoin, given its vast experience in navigating regulatory issues. This also means that Facebook may become the first tech giant in the world to succeed in such an accomplishment. https://en.bitnovosti.com/2018/12/21/facebook-is-working-on-a-cryptocurrency-for-whatsapp-transfers/