Facebook Is Building Its Own Digital Currency for WhatsApp

Posted on December 21, 2018 by Mehedi Hassan in Social with 8 Comments

Facebook is reportedly working on building its own cryptocurrency for WhatsApp. Bloomberg reports that the company’s blockchain group is looking into building a new stablecoin for WhatsApp.

Stablecoin is a form of digital currency that’s pegged to the U.S. dollar, almost like a fixed exchange rate system. The stablecoin would allow for significantly less volatility compared to the likes of mainstream cryptocurrency like Bitcoin as it would be pegged to an actual, real-world currency.

Facebook plans to use the stablecoin to enable money transfer on WhatsApp, focusing first on the remittance market in India, where the app has more than 200 million users. The feature would allow users to transfer money with Facebook’s stablecoin.

The company is reportedly still in its early stages of developing the new stablecoin. In fact, it’s still working on the strategy for the project, with a Facebook spokesperson confirming that the company’s blockchain team is still exploring the different applications of cryptocurrency.

Facebook’s execution here will be the deciding factor for the future of its stablecoin. The company is at a point where the amount of privacy and security-related controversies that emerged in the last 12 months has put it in a position where everything it does will be faced with some sort of backlash. And even though this new stablecoin is far from being public, it will most likely present Facebook with a bunch of concerns from the industry.

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Comments (8)

8 responses to “Facebook Is Building Its Own Digital Currency for WhatsApp”

  1. Daekar

    I can't imagine ever wanting to trust Facebook with this kind of thing. Besides, "stablecoin" is total misnomer since the US currency is subject to wild changes just like any other fiat currency of variable total volume. The best possible cryptocurrency is one that has a fixed total amount and is therefore not subject to inflation.

    This is just more wasted time.

  2. andreluis77

    Facebook is the real world's "Evil Corp" (Mr. Robot).

  3. skane2600

    Great timing, just after digital currencies have peaked and are in decline.

  4. LocalPCGuy

    This is another way to keep people on Facebook and sister companies. They might become a hub of crypto money transfers. I expect them to take a cut of every transfer. They don't give anything away for free.

  5. wright_is

    They should look at making it legal again, before they start adding new features.

    Under GDPR having it on a phone is illegal in Europe, especially a company phone. A lot of companies are banning WhatsApp from company devices or private devices with company email accounts on them.

    If they can't currently be trusted with your contact information, how are you supposed to trust them with your money?

  6. aeriestechnology

    Thank you for this information for blockchain company.

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