Facebook is famous for enabling users to multitask on their platform. While on Facebook, users can make electronic payments as well. Launching a cryptocurrency will help users involve Facebook in financial transactions. The action will gain the website even more popularity in the crypto-community.
Morgan Beller, a corporate development team member of Facebook, started exploring the possibilities of blockchain technology for the website last year. Her research on the decentralized network has been taken up by David Marcus; the vice-president in charge of the Messenger App. David Marcus is to lead the new team that will “explore how to best leverage blockchain technology across Facebook, starting from scratch.”
Marcus, once president of PayPal, knows the benefits of financial transaction apps. He combines his fintech knowledge with a keen interest in cryptocurrencies. Marcus was quick to invest in Bitcoin, and he also joined the board of Coinbase in December. Coinbase has one of the most successful crypto exchanges.
Mark Zuckerberg, CEO of Facebook, while announcing the blockchain initiative of the Facebook team, did not reveal his exact plans for the team.
A Facebook spokesperson said,
“Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new team will be exploring many different applications. We don’t have anything further to share.”
Facebook Credits, released in 2009, were used for the purchase of goods on games like Farmville. The Credits were a form of digital currency specific to the platform. However, the feature was not very popular and was shut down in two years.
The cryptocurrency launch is more likely to succeed because there are other digital currencies already in circulation and their use would not be limited to the website alone. It could be years before the Facebook cryptocurrency reaches the market, but there is no doubt that the currency will join a long line of successful digital currencies.
Facebook will probably make acquisitions in the cryptocurrency market before developing their own currency. As for blockchain technology, Facebook will probably make use of the digital ledger to validate user accounts, and to encrypt information to avoid data leaks that have plagued Facebook in the recent past.