Finally, Facebook is trying its hands on the crypto business. Cryptocurrency is currently a hot cake in the world. So, it is obvious for tech giants to get into this business.
According to a new report by Bloomberg, Facebook is finally working on its own cryptocurrency. It is working to create a new money transfer system for its chat app “WhatsApp”. It will be called “stablecoin”, which is one type of blockchain based cryptocurrency. This cryptocurrency will have a precise value set to a specific unit like the U.S. dollar. As the tech giant is trying to enter the cryptocurrency world, it could create a great impact on the blockchain industry.
FaceCoin – Facebook’s cryptocurrency
In the U.S., WhatsApp is not the most popular messenger app. But, it is very popular in the other parts of the world including India. Out of 1.5 billion WhatsApp users in the world, about 200 million belongs to India. From the global immigrants, many send money back to their home as consideration. People in India migrate to the other parts of the world and sends huge part of their earnings to their families. According to the World Bank, in 2017 alone, about $70 billion worth were sent to India.
The amount sent back is worth to be considered. Not only Indians but also other country people send money to the different parts of the world regularly. So, it seems that Facebook is trying to make this process simpler using cryptocurrency.
Back in May 2018, Facebook started hiring a brand-new blockchain team. So, this was the first hint from the company that suggested about its entry in the crypto-market. Earlier this month, the company also listed out other five job positions. Now, we have reports from Bloomberg as well.
Facebook is stuck in a challenging situation. Earlier this month, Stablecoin had to give up in the cryptocurrency business due to some regulatory hurdles. It was just eight months after which Stablecoin startup Basis had to give up.
Also, the relationship between Facebook and India is quite confusing. Recently, the Indian government warned Facebook for its WhatsApp platform saying it as the reason behind mob violence. WhatsApp has even tried to gain the trust of people in India by advertising in which it suggests ‘avoiding the spread fake news’.
So the question is, do the Indian citizens and its government have enough trust in WhatsApp? If they do, will they trust the new system for transferring money using cryptocurrency? Let’s see what comes next in the journey of WhatsCoin.