Facebook develops stablecoin for use in WhatsApp
Facebook Inc. is working on creating a cryptocurrency that allows users to transfer money through their WhatsApp application, and focuses first on the Indian remittance market.
The company is ready to be used, to minimize volatility. Facebook is still far from launching the currency and is still working on the strategy, including a plan for custody assets, orregular currencies that are maintained to protect the value of the stable currency.
Facebook’s foray into the financial services sector has been expected for some time after the hiring of former PayPal president, David Marcus, to direct his Messenger application in 2014. In May, Marcus replies to the head of blockchain initiatives of the The company, which has not been publicly discussed in detail. Facebook has carried out a series of contracts, and now has around 40 people in its blockchain team.
“Like many other companies, Facebook is exploring ways to harness the power of blockchain technology, this new device is exploring many different applications, we have nothing to say”, a company spokesman said in a statement.
WhatsApp, the application of messages encrypted through the company’s mobile phones, is popular in India, where it has more than 200 million users. The country is also a world leader in remittances: users will send US $ 69 billion to India in 2017, the World Bank said this year.
Facebook, which has 2.5 million global users, more than $ 40 million in annual revenue and more experience in regulatory issues, may have a better chance of becoming a stable base. It would be the first large technology company to launch a project of this kind. The relationship of the company with India has been difficult, mainly because some cases of news have been spread through WhatsApp have led to violence there. Still, Facebook has a tremendous opportunity for growth in the country. India has 480 million internet users, only behind China. That number is projected to grow to 737 million by 2022.
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