Facebook is currently developing its own form of cryptocurrency, sources close to Bloomberg have said. Specifically, a cryptocurrency that will allow WhatsApp users to transfer money between each other, starting first with the remittances market in India.
It’s not just any random crytocurrency that Facebook is trying to create. To make sure that its crypto-dollar is actually worth something, the social media brand is trying to develop a stablecoin. A kind of coin that is actually pegged to the current value of the US dollar, in order to minimise volatility.
As you might have guessed, the concept of a stablecoin isn’t new and somewhat questionable. Besides Facebook’s new endeavour, there is also Tether. A more widely known stablecoin, with each token reportedly back by one US dollar. However, the company behind its existence has consistently refused to be audited after making such claim.
There’s also the current status of WhatsApp in India. For those of you that are unaware, WhatsApp came under fire when the messaging service was used by some unscrupulous individuals to spread fake news. Many of which have led to violence.
Regardless of the nature of cryptocurrency and WhatsApp’s reputation, one thing is exceptionally clear. If anyone has a better chance at kicking a new cryptocurrency off the ground, it’s Facebook.
As pointed out, the social network does have more than two billion global users and more than US$40 billion (~RM167 billion) in revenue and resources to sustain its development.