Facebook is developing its own cryptocurrency for digital payments. The blockchain plan can help Facebook make billions of dollars and help it to get rid of the peril of fake news and bots. While it’s not been officially announced by the company but it has acknowledged that its exploring DLT( Distributed Ledger Technology) to launch FaceCoins.
According to the New York Times, Facebook is working on a token that will be used across all Facebook-owned platforms. Not only Facebook but for Whatsapp and Instagram, these token can be used. The token will be a stable coin by the US dollar and other currencies. Generally, the concept behind stablecoin is far different from cryptocurrency like bitcoin. Bitcoins are not sponsored by fiat currencies, a legal tender backed by the government issues it. So cryptocurrency like bitcoins works on value created by demand and supply. Whereas Stablecoins networks need assurance of value available such as a deposit or reserved.
In a response Facebook spokesperson said, “Many other companies like Facebook is exploring ways to execute the power of blockchain technology.Our new team is traversing many different applications.”
Facebook cryptocurrency could allow user to send money to their contacts similar to how PayPal or Venmo does. But the difference here is these firms has a central bank for clearing the transaction .Whereas Facebook cryptocurrency could allow cross border payments only to verified customers. The platform will enforce KYC process.
It’s been observed that company has increased its hiring efforts to build cryptocurrency team.Even they are looking to hire a candidate for ‘lead commercial counsel,Blockchain’ position.
There are 20 job listings related to blockchain on the website.
Recently former PayPal president David Marcus resigned his seat at Coinbase to join Facebook as a Blockchain research lead. The recruitment clearly denotes that Facebook is all set to launch its blockchain- powered cryptocurrency and is far more serious about its blockchain project…