Internal Sources Claim Facebook Blockchain Initiative is Building a Cryptocurrency

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Alleged Internal Sources Claim Facebook Blockchain Initiative is Building a Cryptocurrency

Despite the initial ban that Facebook imposed on all ads related to ICOs on one of the biggest social media networks, the company later changed its opinion even forming a department for blockchain research.

The head of Facebook Blockchain Initiative, David Marcus, was previously holding the position of the president at PayPal, was previously hired by Facebook in 2014 where Marcus was set to run Facebook’s Messenger app.

Due to his history in financial services, it was considered that Facebook would head towards integrating payment systems into Messenger, while this case scenario became even more relevant when Facebook showed interest in blockchain by officially starting a blockchain-focused department.

According to internal sources that spoke to Bloomberg, Facebook Incorporation is preparing to launch a cryptocurrency.

Internal Sources Claim Facebook Company is Working on a Stable Coin

The sources allegedly wanted to remain unidentified for the obvious reasons of sharing details on internal plans of the company.

As Bloomberg claims in their report published on December 21st, Facebook is preparing to launch a stable coin, which is a digital asset backed by the US dollar, like Tether (USTD) for instance.

We could already see a major tech company, IBM, partnering with a blockchain-based startup Stellar Lumens (XLM) for the purpose of building “the first stable currency,” according to IBM, while numerous industries are testing or already using blockchain.

The purpose of the alleged Facebook’s crypto according to the internal anonymous sources, is said to be related to WhatsApp application.

Facebook Building a Currency to Support WhatsApp Payments

The leads from the company that spoke to Bloomberg said that the company is building their own crypto to minimize volatility as well, however, the main objective is said to be enabling payments on WhatsApp.

Facebook bought the messaging application, WhatsApp, for 19 billion dollars back in October of 2014, later on revealing plans on introducing ads just like with the previously bought Instagram, so the company could acquire additional profit.

As the anonymous sources claim, the transfers that are to be reportedly enabled through WhatsApp are said to first focus on the remittance market in India.

Facebook Still Far from Launching their Cryptocurrency

The sources further claim that Facebook company still has a lot of work to do before releasing the initial digital asset that would enable WhatsApp transfers.

The company is said to be working on the custody plan for digital assets, reworking their strategy, while also exploring how to protect the value of the mentioned stable coin.

As previously reported, Facebook company is showing an increasing demand for hiring blockchain specialists, marketers, and blockchain developers as seen on LinkedIn.

Additionally, public information on LinkedIn shows that Facebook currently counts around 40 people on blockchain-focused working positions.    


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