The Facebook Crypto Myth Looks To Be True After All

There has long been speculation surrounding Facebook’s eventual position within cryptocurrency. In 2018, admittedly we all believed that the potential crypto race was over when Facebook moved to ban all forms of cryptocurrency based advertising on the network, though as we now know this was soon lifted in response to an outcry from the crypto community.

Since then, Facebook have confirmed the development of a new blockchain focus group, led by the recruitment of a number of cryptocurrency and blockchain experts, as a result of this, many had speculated that this could lead to the eventual development of a Facebook based cryptocurrency, indeed, such a token would have a clear use value too.

Facebook have a range of applications that can facilitate payments, including money transfers too, so, surely it would be in their interest to develop a crypto based currency into this platform? Well, now things are starting to become a little more clear as reports confirm that Facebook could be on the verge of creating their own cryptocurrency based stablecoin.

According to Coindesk:

“Citing anonymous sources familiar with the plan, a Bloomberg report on Friday said the company will first focus on the Indian market to let users transfer money via a dollar-pegged cryptocurrency on WhatsApp, the messaging app Facebook acquired in 2014. However, the report added the actual launch of the stablecoin could still be far since the initiative is at a strategic planning stage. Currently, WhatsApp has over 200 million monthly active users in India.”

Furthermore, Anthony Pompilano, the Founder of Morgan Creek Digital Assets has weighed in on the speculation surrounding Facebook stating that:

“If Facebook launches the stablecoin they are reportedly building, it will quickly become the most used product in crypto. The Indian government has been fighting crypto too so things are about to get very, very interesting.”

If Facebook are developing a stablecoin (indeed, it’s likely) then it does have the capacity to become the world’s most adopted stablecoin and could end up appearing on exchanges across the globe. It is however more likely that this will become a key part of the Facebook infrastructure and may be kept internal within Facebook’s operations, so it’s less likely that it will be used as a ‘traditional’ stablecoin and more likely that it will be used to allow Facebook to explore remittance payments and faster money transfers.