It is reported the new Facebook cryptocurrency and blockchain technology project is almost complete. For the last one year, this social media giant has shown a massive interest in blockchain technology. The revelation that the project is almost complete and will allow users in India to use WhatsApp Messenger to send payments using cryptocurrency is good news.
Use of Whatsapp Messenger to Make Cryptocurrency Payments
Reports indicate that the Facebook team is planning to use a stablecoin that is pegged to the U.S dollar to avoid certain risks that are associated with cryptocurrencies such as price fluctuations. Notably, Facebook intentions to offer financial services were first hinted after the hiring of David Marcus, former PayPal President. A robust and secure payment system will significantly add tremendous value to this social media company and make it more useful to millions of people who rely on it.
At the time of writing, the company executives have revealed they plan to use a cryptocurrency to focus on small payments in India. The use of a stablecoin instead of bitcoin or any other similar cryptocurrency that is not pegged on an internationally accredited fiat currency will make the project even more worthwhile to the users. This is based on the fact that they will not have to worry about the frequent price fluctuations and other related challenges.
This year, price volatility has been a major challenge to individual and institutional investors. Severally, the prices have seesawed 10-15% in 24 hours. Stablecoin provides a solution to this challenge as they mirror the rate of the fiat currencies that are backed by national governments. Most investors are optimistic that their introduction into the ever-ballooning industry will help resolve the volatility problem amicably.
Facebook is just one of the many technologically advanced companies that are exploring blockchain technology. Many financial service providers such as banks are looking at the pros and cons of using blockchain technology to enhance their service delivery. Examples of some of the renowned companies that are currently testing the technology include Walmart, IBM, J.P. Morgan, and Amazon.
Some cryptocurrency experts equate its potential to the internet, but it also has a fair share of hype and challenges that need to be resolved to ensure that users get maximum value from it. It is also important to point out that very few U.S companies have completely embraced digital currencies so far. Chief Executive Officers such as Warren Buffett and Jamie Dimon have on several occasions criticised bitcoin and issued a warning to investors.
Finally, WhatsApp Messenger is owned by Facebook and has gained massive traction in India where processing of payments is a big business for financial institutions in the country. A recent report from the World Bank revealed that people from all across the globe sent $69 billion to Indian companies and individual experts last year for goods and services rendered.
Facebook cryptocurrency and blockchain project is keen on leveraging this opportunity by providing a system that will allow more people to send payments to India securely, faster, and conveniently. Read more cryptocurrency news here.