Amid the growing interest in cryptocurrencies and blockchain by institutions and tech companies, there have been rumors that Facebook is planning to launch its own in-house crypto coin. Well, it now seems that the talk is no longer a rumor.
Facebook is indeed in the process of developing a cryptocurrency. Dubbed Facebook Coin, the crypto token will be mainly used to facilitate funds transfer via Facebook’s WhatsApp messaging platform.
Facebook Negotiating With Exchanges
Details emerging about Facebook’s crypto development indicate that the popular company is already in talks with various cryptocurrency exchanges to drum up some support for Facebook Coin. This seems like a smart move, given that cryptocurrencies tend to gain more popularity and mass trading support when listed by popular crypto exchanges.
At the moment, Facebook boasts over 300 WhatsApp users across the world, meaning that if WhatsApp is integrated with a secure crypto wallet for Facebook Coin, it will have a ready market and have an easier time in its campaign for mass adoption. With such a platform, users can send funds to their friends and family right from their phone.
Facebook Coin Vs Bitcoin
According to experts like Vijay Boyapati, a software engineer, whether or not Facebook Coin could pose a threat to Bitcoin’s market dominance will depend on how it is used. Also, Bitcoin is largely decentralized unlike others like the upcoming JPM Coin that are created and owned by centralized institutions. If Facebook Coin takes the centralized route, it will have no impact on the Bitcoin market.
Of late, Facebook has had a sharp eye for blockchain experts. The company has started an in-house blockchain development team and brought on board various blockchain developers.
It promoted its own Evan Cheng to the position of the head of the company’s blockchain engineering. Facebook also acquired Chainspace, a blockchain startup. Current reports indicate that Facebook Coin could enter the market anytime within the next 6 months.