News reaching Ethereum World News indicate that facebook is developing a stablecoin to let users transfer money on its WhatsApp messaging App (Whatsapp was acquired by facebook back in 2014). The team at facebook will first focus on the market in India with this new concept and service.
Sources privy with the matter told Bloomberg.com that using a stablecoin is intended to reduce the volatility that is common in the crypto markets. The sources also stated that facebook is far from releasing the product because the team is still working on the strategy for rolling out the coin and service. The strategy also includes plans of backing up the stablecoin with assets such as regular fiat.
History of facebook’s Interest in Blockchain and Crypto
Facebook’s David Marcus became the company’s head of blockchain in May of this year. Mr. Marcus was hired by facebook back in 2014 to run its messenger app. He was the former president of PayPal before making the move to the giant social media firm.
Back in May, Marcus had stated that he was creating a small group of people to explore the possibilities of leveraging blockchain technology for the betterment of lives across the globe.
Facebook’s Latest Job Openings With A Focus on Blockchain
Earlier on in the month, the crypto community noticed that facebook had advertised 5 jobs related to blockchain technology. The jobs were all based in Menlo Park, Carlifornia, and were as follows.
Data Scientist, Blockchain
Data Engineer, Blockchain
Software Engineer, Blockchain
Software Engineer (University Graduate), Blockchain
Product Marketing Lead
The job vacancies pointed to facebook being close to releasing a product on the blockchain.
Future Outlook of a facebook Stablecoin for Remittances on Whatsapp
The idea of remittances powered by cryptocurrencies had been expected by facebook. However, many had speculated that it would be on its social media platform or messenger app. The news that facebook plans to use Whatsapp makes sense in that the app has a far wider reach when compared to facebook’s messenger. Practically everyone with a phone line and a smart phone has whatsapp downloaded on their handsets.
The facebook stablecoin, and its use for remittances on Whatsapp, will ease remittances across the globe not only between families in different countries, but for micro transactions such as paying for vegetables at the local market.
Other remittance service providers such as Banks, Moneygram and Western Union might need to restrategize once facebook goes live with its stablecoin on WhatsApp.