Facebook is creating its own native Token that will be used on WhatsApp to facilitate cross-border payments. The new Facebook Cryptocurrency is expected to transform social media by allowing users to participate in financial transactions.
Meanwhile, the popularity of Cryptocurrencies is growing as more people are recognizing the importance of Digital Tokens in real-life situations. Hence, despite the current bearish cycle, more people are in favor of adopting Digital Tokens both as long-term investments as well as real-time currencies. Therefore, the Facebook Cryptocurrency creation is timely as it will meet the prevailing needs.
Further, the US SEC and the CFTC are adopting Crypto-friendly policies that have the potential of protecting Crypto-holders, a factor that is alluring many users to use Digital Tokens.
About The Project
The timeline for deploying the Facebook Crypto is set for the course of the year. There are 50 engineers working on the project under the management of the former president of PayPal David Marcus. The input of the former PayPal DP is significant as his input in the process will be vital in creating a state-of-the-art payment platform that rivals PayPal, Skrill, Venmo or any other online payment platform.
Further, Facebook is having conversations with Crypto exchange platforms that are expected to offer a market platform for prospective users to purchase the Facebook Token.
The Facebook Token Will Be A Stablecoin
Stablecoins are the ideal option of Cryptocurrencies that are immune from market volatilities that trigger bearish trends. On the flip side, Stablecoins cannot benefit from massive bull gains that can occur in the market. However, the stability aspect gives investors’ confidence in the short-term as well as the long-term outlook.
The social media giant aims to make its Token a Stablecoin by establishing a reserve that backs the Coin with Euros, US Dollars, and other national currencies. These Fiats will be held in the official Facebook bank accounts that will be managed in a transparent manner to win the trust of the future Coin holders.
The Project Would Have a Huge Impact In The Crypto Community
WhatsApp, Instagram, and Messenger messaging apps that are owned by Facebook have a combined usage of 2.7 billion people. Since Facebook plans to integrate the Digital Token with all the other two platforms, this project is bringing Cryptocurrency to a significant proportion of the global population and this could greatly expand the global Crypto community.
Facebook Coin will have a positive impact on the remittance and retail industries. This is because many unbanked people using WhatsApp will be able to send Tokens across borders. Further, merchants will be able to accept the Coin given its stability that is comparable to most Fiat currencies.
Additionally, Facebook is aiming to offer attractive transaction fees and is going a step further to incorporate features that proffer security to protect wallets from hackers.
Experts believe that the Facebook deal would change the competitive landscape when it comes to international remittances. One of the platforms that will be competing with Facebook includes MoneyGram that has recently partnered with Ripple to offer its own native Token.