Facebook is in talks with numerous exchanges about potentially listing a cryptocurrency.
New York Times story published Thursday reveals plans of Facebook to list a token soon.‘The Times’ reports that Signal and Telegram are also planning to roll out tokens over the next 12 months.
This is the most anticipated but secretive project at Facebook. The company is working on a coin that users of WhatsApp, which Facebook owns, could send to friends and family instantly, said five people briefed on the effort who spoke on the condition of anonymity because of confidentiality agreements. The social media giant has 2.5 billion users globally.
Facebook has strengthened its blockchain team in recent months, with a hiring push and at least one talent-minded acquisition. The company is currently aiming to fill nearly 20 blockchain-related positions. According to The Times report, more than 50 Facebook engineers are dedicated to the company’s blockchain project.
Increasing the reach of the project, the story notes prior reporting that Facebook has plans to integrate users across its Messenger, WhatsApp and Instagram messaging services.
Bloomberg first broke the story of a “Facebook coin” in December 2018, but now the story on New York Times makes it clear, Also, Facebook isn’t the only social media giant developing a cryptocurrency.
This project is being headed by David Marcus, who was the former president of PayPal. The project is geared towards introducing a stablecoin, one whose value does not wildly fluctuate. Facebook is expected to guarantee the value of its coin by backing every coin with traditional dollars or euros or other traditional currencies held in Facebook’s bank accounts.
Facebook’s plans to integrate WhatsApp, Messenger and Instagram messengers could be another step in that direction, as this will then let Facebook have around 2.7 bn people (according to current user base) on a single platform.
But since Facebook likes to have complete control over things, we are in a mystery about how the principles of cryptocurrency would apply, which is fundamentally based on the premise of being without regulation.
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