Facebook is working on its own cryptocurrency for WhatsApp transfers

Facebook is working on a cryptocurrency for WhatsApp, the messaging service of the firm. WhatsApp, based on a report by Bloomberg on Dec. 20. The messaging app will use the new token for money transfer for its users, focus on remittances market in India.

computer screen showing facebook login page

Bloomberg also claim that Facebook is developing a stablecoin. The release date of the coin will not be in the near future the source claims. Facebook is working on its strategy for digital assets namely, what will be used for the stablecoin.

Financial part

The remittances market in India is important. World Bank’s datas showing, the country received approximately $69 billion dollars in foreign transfers in 2017. This 2.8 percent of its GDP.

WhatsApp is very popular in India, the messaging app have more than 200 million users in the country. After the data and internet costs reduced last year, the number of users in countryside has doubled.

Changing direction

In the past year, Facebook significantly changed its aspect regarding cryptocurrencies. The social media network presented a crypto ad ban in January. This one is created to prevent “ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices.”

David Marcus, the head of Facebook Messenger said in May, the firm had set up a blockchain research team at Facebook. At the same time, Marcus was also a board member at Coinbase, the San Francisco-based crypto exchange and wallet service.

Marcus also wrote later “I’m setting up a small group to explore how to best leverage blockchain across Facebook, starting from scratch.” The social media page cancelled the ban of cryptocurrencies in June, but Facebook still keep the ban for the promotion of initial coin offerings (ICOs).

Marcus resigned from Coinbase’s board in August, in order to avoid conflict of interest. He added “Because of the new group I’m setting up at Facebook around blockchain, I’ve decided it was appropriate for me to resign…”

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