Facebook Plans to Start its Own Cryptocurrency
At one point or the other we all have come across the term “Cryptocurrency”. After the downfall of Bitcoin, Social media giant Facebook is about to launch its very own cryptocurrency. According to news report, Facebook is going to capitalize on cryptocurrency for payments on the social media platform. With Facebook’s plan to merge its three platforms — Messenger, WhatsApp and Instagram – the digital currency would reach nearly “2.7 billion people who use one of the three apps each month”.
Facebook’s Cryptocurrency are meant to allow users to send money to contacts on their messaging systems, like a Venmo or PayPal that can move across international borders. More than 50 engineers at Facebook are reportedly busy giving shape to the social media giant’s own cryptocurrency and CEO Mark Zuckerberg is quite bullish on the project.
“The most anticipated but secretive project is underway at Facebook. The company is working on a coin that users of WhatsApp, which Facebook owns, could send to friends and family instantly,” New York Times reported.
In a public interview with Harvard Law professor Jonathan Zittrain late last month, Zuckerberg said he is “potentially interested” in putting the Facebook login on the Blockchain technology. “I’m thinking about going back to decentralised or Blockchain authentication. Although I haven’t figured out a way to make this work out but this is around authentication and basically granting access to your information and to different services,” Zuckerberg told Zittrain.
“Like many other companies, Facebook is exploring ways to leverage the power of Blockchain technology,” Facebook said. Facebook’s latest focus is on cryptocurrency for facilitation of payments that will help Facebook’s Marketplace. This is not the only way it will use cryptocurrency, according to the news report. Apparently, it will also use the underlying technology of Blockchain which is responsible for cryptocurrencies such as Bitcoin in various other solutions on the platform.
Like bitcoin, the new Facebook’s cryptocurrency would make it easier to move money between countries, particularly in the developing world where it is hard for ordinary people to open bank accounts and buy things online. The current designs being discussed generally do away with the energy-guzzling mining process that bitcoin relies on.