Facebook Is Open to the Idea of a Native Cryptocurrency
In a report published by online video news network Cheddar, it was informed that Facebook is considering to create its own digital currency. The new venture will help Facebook users in trading goods with each other more easily on the social platform without government currencies.
As of now, Facebook has not come up with any official statement or a hint on the usage of virtual coins. The report suggests that a coin designed like bitcoin would allow people to buy and sell goods on an international level through Facebook’s platform that has grown immensely all around the globe.
Earlier this week, Facebook established a team focused on blockchain adoption similar to bitcoin and XRP. David Marcus, head of Facebook’s Messenger service, was transferred to lead the blockchain division of the company.
Facebook has not released any statement about the plan it has for its blockchain department, but Marcus informed that the company would be “starting from scratch.” Marcus has seen the growth of online payment systems closely as he is the ex-president of PayPal and is currently a board member of the Coinbase digital currency trading service
One of Facebook’s spokespersons informed Fortune through an email, “Like many other companies Facebook is exploring ways to leverage the power of blockchain technology. This new small team will be exploring many different applications. We don’t have anything further to share.”
According to Bridget Kralingen, IBM’s blockchain chief, blockchain technology would play a major factor in resolving the data privacy controversy Facebook faced recently. She said that blockchain technology is specifically tailored for people who are concerned about their privacy and how their information is being used. The breakthrough technology can inform about the various advertising services using user’s data “or on the personal side.”
She believes that blockchain technology is capable of solving issues Facebook is dealing with its business model right now and the tech giant should be appreciated “to take this very seriously.”
It is not the first time Facebook is trying hands at a self-developed currency as in the case of Facebook Credits. The system was released in 2011 to assist people in paying for virtual goods and games on the social networking platform. However, the venture turned out to be a mess mainly due to the fluctuating exchange rates.
Experts in the market believe that Facebook will explode into a bigger company if it is able to tame the technology. Blockchain has endless possibilities, and with the resources and money Facebook has, it can easily use the technology to its best advantage. Furthermore, the company has experienced a decline in its goodwill due to the recent case of privacy threat in which Facebook was acknowledged as the main culprit.
The new technology will instill faith in its users who are loyal to the company. Being the biggest social network, it can reach the most number of people that will boost its virtual coin to new heights. It won’t be a surprise if someday Facebook’s coin surpasses bitcoin in popularity.