The social media giant, Facebook Inc. is considering to make a cryptocurrency which will allow the users to transact via its Whatsapp messaging app, with a prime focus on the market of remittance in India, as per the sources, reports Bloomberg on December 21.
On the condition of anonymity, the sources talking to Bloomberg said Facebook is developing a stablecoin pegged to the U.S. Dollar to minimize the repercussion of the volatile state of cryptocurrency market.
Rumors surrounding Facebook’s involvement in blockchain related project started emerging in 2014 when they hired former PayPal president David Marcus to head its Messanger app. Although the company has not discussed anything publically regarding this development yet, the report mentions that there are at least 40 people working on blockchain related project in Facebook based on their LinkedIn tiles.
But, the sources to Bloomberg also says these developments are far from ready to launch as they are looking all the crucial expects of it, including its working strategy and a plan for custodial assets.
WhatsApp is among the most popular messaging app in India with more than 200 million registered users. With that India is also top on the list of the remittance receiver in the world, around $69 billion in 2017 as reported by the World Bank.
A spokesperson of the company said, ‘like many other companies, Facebook is exploring ways to leverage the power of blockchain technology,” adding, “this new small team is exploring many different applications. We don’t have anything further to share.”
Stablecoin is comparatively a new concept in the cryptocurrency market which aims to provide stability in the volatile market of cryptocurrency with numeros working towards it. Although coins like USDT, TUSD a recent coin USDC are functional many trying to gain a market failed also. Most notably among them is the example of Basis which ceased operation just after eight months after.
India is home to 480 million active internet user, just second after China is a huge market for Facebook. As the company has a strong user base globally and generating $40 billion in revenue annually won’t find it hard to launch it’s stablecoin successfully as it seems.
Apart from this initiatives, Facebook is also struggling to maintain its reputation after the global fiasco of its data breach. Especially in countries like India, Facebook is also trying to prevent the spread of fake news through WhatsApp.