Facebook is creating a cryptocurrency to be used in its messaging service Whatsapp. Supposedly this will be a stablecoin that will be used for money transfers within the app. Its focus would be on the Indian market, as was reported by news agency Bloomberg.
The social media giant picked a stablecoin pegged to the US dollar in order to avoid any volatility. However, these plans are still in a very early stadium. The company is currently working on the strategy, including a plan to keep the coin pegged to the dollar.
There has been lots of speculation surrounding Facebook and their activity in the cryptocurrency and blockchain market. Former Paypal president David Marcus joined the company to run its Messenger app, but is now responsible for the blockchain division. This group reportedly has 40 or more people on its payroll.
The choice for India is a logical one, according to Bloomberg. Whatsapp has over 200 million users in the country, while Indians abroad sent $69 billion home to India in 2017. However, Facebook creating a stablecoin is somewhat controversial.
Stablecoins have been under fire in recent month. The most popular coin out there, Tether (USDT), lost its one dollar value in October. It was only recently that it regained some trust after reports – again from Bloomberg – that the company behind USDT had the necessary money all along.
Also published on Medium.