After recent news that Facebook is going to engage in cryptocurrency developments, representatives of the WhatsApp subsidiary announced the creation of a new digital payment system.
According to the report, Facebook is working on a cryptocurrency that users can spend using the WhatsApp application, which is currently controlled by Facebook. The project's initial focus is on India, which has a market of about 200 million users. According to World Bank statistics, India leads the world in remittances, with migrant workers sending about $69 billion to their families in 2017.
It is currently known that the company's cryptocurrency will be a stablecoin pegged to the US dollar. According to Bloomberg reports, the company is developing a long-term strategy, including “a plan for custodial assets, or traditional currencies, that will be held to protect the value of the stablecoin.” Developers believe that this currency will make everyday purchases easier and will be less volatile than non-fiat-pegged cryptocurrencies.
“Like many other companies, Facebook is exploring ways to harness the potential of blockchain technology,” a company spokesperson said. “Our new team is exploring many different uses. We have nothing more to say at this time.”
Alex El-Nemer, director of blockchain venture Nexus, said:
Cryptocurrencies are already accepted by millions of people as a secure digital alternative for transferring funds. Using cryptocurrency on platforms like Facebook or WhatsApp is the next logical step in its development. Users will be able to buy services, products and goods with one click. Forward-thinking organizations should recognize that the era of digital currencies has already begun and plan to integrate services for this industry.
Facebook conducted its first experiments with blockchain back in 2016, when company executives assigned employees of the corporate development department to study the technology. Since then, Facebook has continued to explore and explore the possibilities of blockchain. Thanks to a huge customer base (2 billion Facebook users and 1.5 billion WhatsApp users), this cryptocurrency can become truly nationwide. The existing infrastructure of these companies is huge, and this will only help further the adoption of cryptocurrencies.
According to cryptoinsider.com
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