According to a Bloomberg report Facebook is working on its own cryptocurrency for WhatsApp transfers. And first market for its launch is going to be India.
So finally we’re starting to hear something about the blockchain plans of Facebook. Ever since the company transferred David Marcus from Head of Messenger platform to the Head of Blockchain initiatives it was in the rumors that company is planning to enter the fintech space with help of blockchain technology, and now we’re hearing that the company is actually working on its own cryptocurrency.
That’s right. According to a latest Bloomberg report Facebook is developing a stablecoin to facilitate transfers on WhatsApp. And most interestingly, the market where company wants to launch this product first of all is India. Whether government likes cryptocurrencies or not, one of the biggest internet companies in the world has its own crypto plans for the country. And there’re good reasons for that.
The first reason is dominance of Indian users on WhatsApp. The encrypted P2P messaging service is extremely popular in our country with 200 million monthly active users. In addition to that Indians also lead the world in remittances. Indians living abroad sent $69 billion back home in 2017 alone. The company seems to be interested in cashing in on this particular dynamic of opportunity (a huge remittance market) and strategic advantage (the popularity of WhatsApp).
Bloomberg’s report is based on the information provided by some of their sources in Blockchain team of Facebook, which has grown to a strength of 40 over the course of last few months (based on the titles of Facebook staff over LinkedIn). The sources have obviously not been named, so we should still take this with a grain of salt… but the possibilities of this thing can’t be ruled out due to the developments that took place in the recent days. Company’s shifting of Former PayPal President David Marcus to Blockchain team and subsequent reversal of ban on crypto related ads shows that Facebook is slowly getting more and more interested into cryptocurrencies.
But even if it’s true, the stablecoin isn’t going to be launched anytime soon because it’s still in the planning stage. However, the news of Facebook getting into crypto scene may at least help the ongoing rally of crypto market.
Does Facebook know something special about crypto regulation of India?
If Facebook is planning to launch this new project in India before anywhere else, it’s impossible that they wouldn’t have taken our regulatory climate into account. Those super smart guys won’t commit such a big mistake. So the question that comes to mind after this news is… does Facebook know anything special about the upcoming crypto regulation of India that is not known yet? That possibility can also not be ruled out, thanks to the lobbying power of company in Indian government circles. Possibly something interesting is in the offing. Let’s wait and watch!