News has been lingering since sometime late in 2018 that social media giant, Facebook Inc are reportedly developing a cryptocurrency that will make money transfers possible using WhatsApp.
Facebook exploring cryptocurrency is a move that banks on the need to better monetize WhatsApp and perhaps blockchain.
But as good and interesting as it may sound, there are still factions that criticize the move.
Let’s analyze and see if this move is as interesting as it seems.
Facebook Exploring Cryptocurrency
As I have stated earlier, Facebook had made its exploring intentions known since late 2018.
For the record though, Facebook had bought WhatsApp for about $19 billion back in 2014.
As the news stated last year, the social media giant is developing a custom token which is to be used for money transfers within the app, aiming to minimize volatility using the Stablecoin.
The news is that work, strategies, and plans have already been set in motion towards achieving this as they look to offer a reliable Stablecoin which could be pegged against the USD.
This news although fresh does not come as a surprise to many. Facebook has over time been researching avenues to venture into the blockchain and cryptocurrency sphere.
First, was it setting up a blockchain team which consisted of about 40 people and led by former PayPal boss, David Marcus. Also recently, the company published vacancies for various blockchain-related roles.
Despite the excitement of many at the sound of this news, the social media giant is very quiet as to its plans as the company continues to develop an asset to which the Stablecoin would be tied to.
A spokesperson of the company had been credited saying that like other companies, Facebook is also exploring and researching ways to leverage on blockchain technology and is considering a set of different use cases and applications.
WhatsApp and India; A Strategic Location
As we have gathered, this new cryptocurrency could have India as its launch destination given some logical fact and statistics. WhatsApp is most common in the country.
India provides over 480 million internet users coming second to only China and 200 million monthly active WhatsApp users.
Another factor in this strategic choice of location banks on India’s ranking among the biggest remittance market globally accounting for over $69 billion sent home to India alone in 2017, hence the strategic location for the project.
As to the choice of a stablecoin, experts have concluded that Stablecoins look like the new crypto trend as it offers more stable prices [less volatility] as compared to regular cryptocurrencies, not minding the fact that most of these so-called stable coins have faced various levels of scrutiny in recent times.
Two Sides of the Coin; Difference in Opinions
Research has shown that some quarter in the cryptocurrency sphere have embraced the project with open arms considering this would mean a reversal of Facebook’s initial block of crypto ads.
Some also believe that the company has a high success rating with the coin due to its team which consists of notable names with vast experience and also the regulatory trademark of the company.
On the other side of the coin though are decentralization enthusiasts who believe that the development of centralized cryptocurrency options is unwarranted as they divulge from the core values and principles of cryptocurrencies and P2P payments.
If the project is successful as it seems it would be, it could lead to a massive bull run for the market and also mass adoption for the cryptocurrency.
On the other hand, however, Facebook has to rethink its plan of a centralized cryptocurrency if it wants to enjoy a smooth ride in the land of crypto.
What are your thoughts on the idea of Facebook exploring cryptocurrency options?
Are you alright with it being a centralized cryptocurrency?
What would this project mean for Facebook and the crypto market at large?
Share your thoughts and opinions below.