Is Facebook developing its own digital currency? Report claims scandal-plagued tech giant is now creating a 'stablecoin' backed by the US dollar for WhatsApp
- Facebook may be developing a 'stablecoin' that's pegged to the U.S. dollar, which means it'll likely be less volatile that other digital currencies like bitcoin
- The digital currency would likely let users send each other money in WhatsApp
- Comes after Facebook banned all cryptocurrency advertisements on its site
Facebook could be developing its own cryptocurrency that users can send via WhatsApp.
The tech giant is in the process of creating a 'stablecoin' that will allow users to transfer money on the Facebook-owned mobile messaging service, according to Bloomberg.
A stablecoin is a type of digital currency pegged to the U.S. dollar and is often favored for the fact that it's less volatile than other currencies, such as bitcoin.
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Facebook is in the process of creating a 'stablecoin' that will allow users to transfer money on the messaging service WhatsApp. The firm is expected to launch the digital currency in India
Facebook is expected to launch the digital currency in India, Bloomberg said, as the country has a massive remittance market, where users residing in international countries send money back to family members in their home country.
However, it will likely be a while before the currency becomes a reality, as the firm is still developing a strategy for its launch.
'Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology,' a Facebook spokesman told Bloomberg.
Speculation began building that Facebook would pursue some kind of financial services after it scooped up former PayPal president David Marcus to lead its blockchain division.
Facebook is expected to launch a 'stablecoin,' which is a type of digital currency that's typically tied to the U.S. dollar. It generally has less volatility than others like bitcoin (pictured)
'This new small team is exploring many different applications,' the spokesperson continued. 'We don't have anything further to share.'
WhatsApp has racked up over 200 million users in India and brought in $69 billion worth of remittances in 2017, according to Bloomberg.
Little information has been made public about what Marcus and the blockchain group plan to focus on.
The team has about a dozen employees on it, including several former, top Instagram executives like James Everingham, Instagram's vice president of Engineering, as well as Kevin Weil, Instagram's vice president of Product.
As part of his announcement of the blockchain team, Marcus said he created it to 'explore how to best leverage Blockchain across Facebook, starting from scratch.'
That's after Facebook in January moved to block all ads related to cryptocurrencies, including Bitcoin, as a way to crackdown on scammers.
The social media giant said it is barring ads for financial products and services that are frequently associated with 'deceptive promotional practices'.
The company said this included initial coin offerings and cryptocurrencies.
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