Second Bloomberg, it is said that Facebook is currently developing its own Stablecoin with the aim of being implemented through Whatsapp. In its first phase, Stablecoin will serve as a currency for remittances to India, to allow the transfer of money through the messaging app. However, the project is still under development, which is why they are continuing to analyze the financial market in order to develop a viable strategy to implement this project on the market.
It is said that Facebook has hired the former CEO of Paypal, David Marcus, to carry out the project. In addition, the social network company presumably assumed more than 40 people who will participate in the development of the project. According to an unknown part, Facebook is also looking for ways to exploit the advantages of blockchain technology and implement it in its current business model. A company spokesman said:
"Like many other companies, Facebook is exploring ways to harness the power of blockchain technology … This new small team is exploring many different applications, we have nothing else to share."
For the moment, Facebook is planning to use the Indian market to test the project, mainly because of the huge market it offers. Whatsapp is a huge messaging app used everywhere, but especially in India with over 200 million active users. India is also one of the largest countries when it comes to remittances, throwing a whopping $ 69 billion in money transfers in 2017.
If the rumors were true, Facebook could join a huge market. If you've ever tried to send money abroad, the banks charge huge fees for converting and transferring money, which ends up leaving you with much less money than you've calculated. Cryptocurrencies have a way of solving this problem magnificently, especially in countries with huge inflation rates like Venezuela. The project comes with its difficulties and challenges, which is probably the reason why the company has not yet confirmed anything but given the huge platform that Facebook has available, this could turn out to be another billions of dollars project for the giant of social media.