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Facebook reportedly plans to launch its own cryptocurrency

Facebook reportedly plans to launch its own cryptocurrency

Social media giant Facebook is reportedly exploring the blockchain technology and might be contemplating launching its own cryptocurrency.

There aren’t much details revealed but Facebook is said to use the cryptocurrency to facilitate transactions on its platform. And if it’s true, it would definitely be a monumental shift given Facebook’s huge user base and market influence.

“Sources say that Facebook is specifically interested in creating its own digital token, which would allow it is more than two million users to facilitate transactions without government-backed currency. Facebook is also looking at other ways that it could use this core blockchain technology that underpins these popular cryptocurrencies like Bitcoin and Ethereum,” said Alex Heath, a senior reporter at Cheddar.

Heath further said that Facebook is also looking into how it can use the blockchain technology for other purposes like for the improvement of identity verification and for the security of its infrastructure.

In a New Year Resolution post in January, Facebook CEO, Mark Zuckerberg mentioned that his company was open to research the blockchain tech. Last week, according to a CNN report, Facebook announced that it has formed a team, led by a Facebook exec David Marcus, dedicated to study the blockchain technology. Here to highlight that Marcus is also a sitting member of Coinbase’s board of directors.

See Also: Coinbase Tried To Place $8 Billion Value on Itself

Marcus has also formerly served PayPal as its president and is an outspoken crypto advocate. It seems like Facebook’s newly formed blockchain research and development team has the ideal leadership under which it can carry out tasks and achieve its goals.

If Facebook is actually planning to roll out a cryptocurrency , we will likely see some “strategic acquisitions” in the crypto industry by the tech giant.

However, launching a brand new cryptocurrency is not an easy task itself. Even if Facebook has decided to launch a cryptocurrency, it will likely be “years away”.

Facebook is not the only social media giant to move towards the crypto space and launch its own cryptocoin. Telegram says that it has raised $1.7 billion from its ICO to launch a “third-generation blockchain” named Telegram Open Network while Kik is working on a blockchain token called Kin.

Speaking of ICOs, Heath says that Facebook would not probably hold an ICO because firstly, the company has already a good looking balance sheet and secondly, it won’t sell crypto coins with its already-battered reputation. Instead, the company might just airdrop them or reward them to the users.

Also Read: Facebook, Mark Zuckerberg to Explore Blockchain Technology

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