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One of the largest social networks in the world, Facebook Inc., is working in a stablecoin to send and receive funds via the WhatsApp application. According to Bloomberg, the intention is to focus on the remittances market in India. The information was provided by anonymous sources close to the development of this stablecoin to Bloomberg.
Facebook’s Stablecoin
There are many different companies entering the virtual currency market. One of them is Facebook. The social media giant could soon launch a new stablecoin to use in the remittance market in India. The new coin will have some similarities to other stablecoins already released to the market.
One of the main purposes of creating a stablecoin is to reduce volatility in the crypto market. Bitcoin (BTC) and other digital assets are very volatile, which is sometimes not good for the whole crypto market. This stablecoin will be backed by real assets in order to protect the value of the coin. Although it seems that the project is moving ahead, there is no release date for this digital currency. Indeed, it might take very long before a product is released to the market.
David Marcus, a former PaPal president, joined Facebook’s Messenger back in 2014. At the same time, he has served as board member at Coinbase, one of the largest and most popular crypto platforms in the market.
WhatsApp is one of the most important messaging apps in India. People from rural areas have also adopted WhatsApp in order to send and receive messages. Furthermore, the remittance market is very important in India. Just in 2017, India made around 2.8% of its GDP from foreign remittance.
Facebook has been involved in different scandals this year related to how it handled users’ data. Earlier this year, Mark Zuckerberg said that blockchain technology could help improve the company in the future. According to this source cited by Bloomberg, Facebook is exploring ways to leverage the power of blockchain technology.
Although it could be a good product and solution for many individuals around the world, a cryptocurrency created by Facebook is not something that crypto enthusiasts are excited about. WhatsApp has around 1.5 billion users, making it one of the most used applications in the market.
During 2018, several new stablecoins have been launched to the market after Tether (USDT) experienced some issues with its funds. Gemini Dollar (GUSD), USD Coin (USDC) and TrueUSD (USDT) are just some of the stablecoins that are currently available in the market.