Facebook to secretly develop Cryptocurrency for WhatsApp users
The Tech giant Facebook is secretly working to develop a cryptocurrency to let its users transfer money on WhatsApp.
As per reports, the company is developing a stable-coin; a type of Cryptocurrency attached to the US dollar to minimize volatility.
Facebook is still working on its policy:
The report further said that Facebook is presently far from releasing the coin and it is still working on the policy. It is also working on a plan of regular currencies and custody assets that would protect the value of the stable-coin.
What are stable-coins?
Stable-coins are cryptocurrencies and are designed to minimize the effects of price volatility. Initially, it will be launched in India.
The main aim of developing Cryptocurrency:
Facebook is initially targeting India’s remittances market. According to a report from the World Bank, India is a top recipient of remittances with its diaspora sending about $80 billion back home.
WhatsApp will have incredible growth opportunities if they succeed in initiating their payment services in India.
The mobile messaging app is popular in some of the countries including India which has more than 200 million WhatsApp users. In 2017, the Indians living abroad sent $69 billion to India. The country is a leader in the world when it comes to remittances.
WhatsApp in India has been testing the UPI payments since February 2018. The stable-coin project will not be the first test of the digital payments system in India. It is now going to receive BT’s nod to launch the payment feature in India.
Utilizing Block-chain technology:
The company is assessing ways to utilize block-chain technology. Like other companies, Facebook is also going to explore ways to leverage the power of block-chain technology.
The hiring of block-chain developers has been ramped up by the Facebook Block-chain. Now you will see more than 40 people in LinkedIn when you look for Facebook employees with the term ‘Block-chain’.
Progress made in the past years:
The past year has seen a boom in crypto projects related to stable-coins. A Stable Report stated that at one point, there were more than 120 ventures related to this theme.
But unfortunately, as simple as the idea might sound at first, making it a reality has turned out to be far harder than initially anticipated.
The concept was to create a digital coin that would be far easier to use on daily purchases. It is considered to be more stable than currencies like Bitcoin.
First largest company to launch such project
Facebook has 2.5 billion global users. More than $40 billion in annual revenue and greater experience navigating regulatory issues may have a better chance of making a stable-coin that sticks. It will be the first largest tech company to launch such a project.
Source: The News