According to the latest crypto news reports, Facebook might be silently working on a new stablecoin. Facebook hasn’t given any official statement regarding this news, though the information seems to be coming from insiders.
If the gossip on crypto chat platforms is to be believed, the stablecoin will enable money transfer through WhatsApp. The new project is set to be targeted towards the Indian users, as the country’s remittance market is one of the largest in the world, with 2017 alone recording around 69 billion USD of remittance in India.
However, it’s still in its early phases and may take some time as Facebook isn’t really in the good books of the Indian government, especially after the violent outbreaks resulting from rumors spread via WhatsApp. More than 200 million users of WhatsApp are from India alone, and the number might get doubled by 2022.
Insider information reveals that the strategy for the stablecoin project is still being developed. The main focus is to peg the stablecoin to fiat currency to reduce the volatility of the crypto coin. Whether or not Facebook builds a stablecoin soon is questionable, but the project is in works since 2014, since Paypal’s former president David Marcus started managing WhatsApp. Marcus is currently heading the blockchain initiatives of Facebook.
Reportedly, a spokesperson from the social media giant said that Facebook, just like other companies, is trying to leverage the Blockchain technology. The different applications of the technology are being explored.
The company has over 2.5 billion users worldwide with an annual revenue of $40 billion. It would be safe to say that the company must be investing hugely into the development of the stablecoin. The stablecoin space hasn’t really seen a lot of successes, so it’s difficult to tell whether Facebook will be able to bring a perfect stablecoin into the market or not.