The news coming to Ethereum World News indicates that Facebook is developing a stablecoin to allow users to transfer money to their messaging app WhatsApp (Whatsapp was acquired by Facebook in 2014). The Facebook team will initially focus on the market in India with this new concept and service.
The sources familiar with the matter have told Bloomberg.com that the use of a stablecoin is intended to reduce the volatility that is common in cryptographic markets. The sources also said that Facebook is far from releasing the product because the team is still working on the currency and service launch strategy. The strategy also includes plans to back up the stablecoin with assets such as regular fiat.
History of facebook interest in Blockchain and Crypto
David Marcus of Facebook became the head of the company's blockchain in May of this year. Mr. Marcus was hired by Facebook in 2014 to manage his messaging app. He was the former president of PayPal before moving on to the giant social media company.
In May, Marcus had stated that he was creating a small group of people to explore the possibilities of exploiting blockchain technology for life improvement around the world.
The latest Facebook work openings with focus on Blockchain
At the beginning of the month, the crypto community noted that Facebook had advertised 5 blockchain technology works. The works were all based in Menlo Park, Carlifornia, and were as follows.
- Data Scientist, Blockchain
- Data Engineer, Blockchain
- Software Engineer, Blockchain
- Computer engineer (university graduate), Blockchain
- Product marketing leads
The vacant jobs indicated that Facebook was close to releasing a product on the blockchain.
Future prospects of a facebook Stablecoin for remittances on Whatsapp
Facebook had foreseen the idea of remittances powered by cryptocurrencies. However, many had speculated that it would be on its social media platform or messaging app. The news that Facebook plans to use Whatsapp makes sense because the application has a much wider scope than the Facebook messenger. Virtually everyone with a phone line and a smartphone have Whatsapp downloaded on their phones.
The stablecoin of Facebook, and its use for remittances on Whatsapp, will facilitate remittances around the world not only between families in different countries, but for micro transactions such as paying vegetables to the local market.
Other remittance service providers such as Banks, Moneygram and Western Union may need to rebook once Facebook goes live with its stablecoin on WhatsApp.
What do you think about Facebook launching a stablecoin to feed the remittances on Whatsapp? Let us know in the comments section below.
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