Facebook is in the final phases of launching a Cryptocurrency. The world’s largest social media network is believed to have approached several exchanges secretly to help with the launch of its coin. Telegram and Signal are among the other social media platforms that are planning to get into a sector that many Cryptocurrency start-ups have failed. The move is expected to provide consumers with alternative money and enhance the adoption of virtual currencies.
Facebook To Target Whatsapp Uses
Facebook is undertaking a secretive project to launch its own Cryptocurrency. It is believed that the new coin will enable WhatsApp users, a company owned by Facebook, to send and receive money from friends and families globally instantly. The available information also shows that the giant tech company has already approached various Cryptocurrency exchanges to help with selling the new coins to consumers.
Previous Cryptocurrency start-ups have experienced various challenges when trying to sell their products. Apart from lack of capital, most of these companies are unknown to a majority of the population making it even harder to penetrate the market. However, Facebook’s story will be different as it has billions of daily users around the world. Such a company can make its Cryptocurrency products such as coins and wallets available instantly to hundreds of millions of users.
Consumers Are More Comfortable Dealing With Familiar Brands
Consumers will easily embrace products from known brands than startups. In the United States, Venmo is enabling its customers to send money by phones. In China, WeChat, one of the most popular messaging networks in the country, enables its customers to use its payment system. The story will not be different with Facebook either.
The new Facebook and other social media networks coins are expected to function just like the other Cryptocurrencies such as Bitcoin and Ethereum. The company is planning to make it easy for its users to send money across international borders. The new coin is expected to be of major benefit in developing a world where only a small proportion of the population has access to banking services. The company is planning to release a coin that will need the energy-guzzling mining process.
Project To Face Regulatory And Technological Challenges
The new projects by Facebook and other social media networks will not be immune to the challenges in the Cryptocurrency sector. The issue of regulation will continue to haunt these projects as different governments have adopted different measures. Due to a lack of central authority over virtual currencies, there are fears that the new monetary system could be used for illegal activities such as money laundering and tax evasion.
According to Quantstamp’s Richard Ma, the new projects will also face similar technological limits faced by their predecessors. Quantstamp is a company that deals with new Cryptocurrencies providing them with security audits. However, the main benefit with companies such as Facebook is that they have enough resources to invest in research to address the various technological challenges.
According to three people familiar with the project, Facebook has hired 50 engineers to work on the project. The company has hired David Marcus, the former president of PayPal to lead the project, which began last year. According to two employees of the company, the team has an office that’s inaccessible to other employees. It is believed the company is planning to release a dollar-pegged coin to keep speculators away from the project.