The prospect of a Facebook Cryptocurrency is more likely than ever before. The leading social media platform recently acquired the popular chatting site, WhatsApp, and plans are underway to introduce and deploy a WhatsApp on-platform Token for transactional purposes. Hence, Facebook will join the ranks of multi-billion Dollar companies that are not only delving into Blockchain technology but also creating Cryptocurrencies for secure and decentralized peer to peer operations. This is in realization to the fact Cryptos proffer independence of operations as they eliminate the need for third-party involvement.
Facebook Prefers Stablecoins
The Token that Facebook will deploy on its WhatsApp platform will be a Stablecoin whose value is pegged against the US Dollar. Facebook is interested in avoiding volatile conventional Cryptocurrencies that are prone to price plunges that can be devastating and demoralizing. In the history of Digital Assets, there have been numerous market shocks that almost led to severe erosion of investors’ confidence in this class assets.
However, following a spirited media campaign and also a widespread awareness effort by Blockchain firms in educating the public on the benefits of Digital Assets, the volatility concern has been overshadowed by the promises of hefty returns and alluring pros such as cheap cross-border transactions, complete privacy, and anonymity, instant transactions, decentralization, etc.
Overall, Trust In Cryptos Is Surging
The value of Cryptocurrencies has been declining from the beginning of 2018. Mostly, the causal factors are events surrounding the leading Cryptocurrency, Bitcoin, that has an equal number of critics and enthusiasts. In one of the events, the US SEC delayed giving a Bitcoin ETF approval at the end of September triggering massive sell-offs. This problem was exacerbated by the Bitcoin Cash wars between Craig Wright and Roger Ver and the consequence saw a plunge of individual prices to hit a new low for 2018.
All these events have had a ripple effect on the entire markets and many investors are uncertain of what to expect or predict about Cryptocurrencies. Nonetheless, since Blockchain technology is increasingly being adopted into the mainstream industries, most investors are pegging their speculations on increased adoption and demand of Cryptocurrencies.
Facebook Will Set The Pace For Other Tech Firms To Follow
After hiring David Marcus, the former President of PayPal four years ago, Facebook appointed him as a Blockchain Initiatives Head in May 2018. He is responsible for managing a team of 40 technicians and professionals. Their core job description is to develop a technological platform to independently support WhatsApp money transfers.
There are speculations that the program will be launched first in India given its circumstances of a 200 million WhatsApp users who are unbanked and in need of money remittance services from expatriates who are mainly relatives and friends.
A successful launch of this venture would usher in a new era of a race towards deploying Cryptocurrencies and Blockchain technology in various industries and use-cases. Moreover, the use of DLT would repair Facebooks reputational damage among its 2.3 billion users following privacy scandals and security concerns.