The largest social media platform Facebook is planning to launch its own cryptocurrency “Facecoin” for payment transactions on Whatsapp. In last year May, Facebook has gathered a team to search its possibilities of introducing the digital currency in the market, and now Facebook has planned to disclose the secret working.
Today David Marcus, the former head of Messenger who is now leading the Facebook’s crypto project team, has given a statement that he is leaving the board of Coinbase, the largest crypto startup. Marcus was the former president of PayPal and he supports Facebook’s Messenger to adapt chatbot commerce and peer-to-peer transactions.
The situation is now that no one exactly knows what is the planning of Facebook for its cryptocurrency, but there is one statement reported by Bloomberg: “Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications. We don’t have anything further to share.” After some further investigation by Bloomberg and the New York Times that Facebook is working on launching “stablecoin”. It will not have a particular amount of currency that vary in price, possibly depending on demand, in fact, it will have fixed price and the amount in the transaction will differ.
The possible outcome of launching its own digital currency is maybe trying to get the users back because it was disclosed that Facebook lost its 15 million users in the U.S only and the majority of those were between 12 to 34 years. So, it might be eager to attempt to prompt those users with the launch of cryptocurrency. What will Facecoin will use for? As if it is stablecoin, so investment and store of the asset will not be possible, it can be just exchanged by users to each other on different messaging platforms.
The security risk will also be the major factor, as presently Facebook was unable to protect the user’s data and privacy and that resulted in high coverage drama in the Cambridge Analytica case. It might be stepping back for some users to trust Facebook with their financial details. However, a few days earlier, Barclays analyst Ross Sandlers had predicted that Facecoin could make up to $19 billion in the market in 2 years of its launch. So, if now we have to wait for the launched and have to see what will be the result of Facecoin in the market – Will Facecoin is success or failure?