Latest News

Facebook developing cryptocurrency for WhatsApp transfers: Report
Friday, December 21, 2018 IST
Facebook developing cryptocurrency for WhatsApp transfers: Report

Facebook is developing a stablecoin—a type of digital currency pegged to the US dollar—that will let users transfer money on its WhatsApp messaging app
 

 
 

San Francisco: Facebook Inc. is working on making a cryptocurrency that will let users transfer money on its WhatsApp messaging app, focusing first on the remittances market in India, according to people familiar with the matter.
 
The company is developing a stablecoin -- a type of digital currency pegged to the U.S. dollar -- to minimize volatility, said the people, who asked not to be identified discussing internal plans. Facebook is far from releasing the coin, because it’s still working on the strategy, including a plan for custody assets, or regular currencies that would be held to protect the value of the stablecoin, the people said.
 
Facebook has long been expected to make a move in financial services, after hiring former PayPal president David Marcus to run its Messenger app in 2014. In May, Marcus became the head of the company’s blockchain initiatives, which haven’t been discussed publicly in detail. Facebook has been on a hiring spree, and now has about 40 people in its blockchain group, according to employee titles on LinkedIn.
 
“Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology,” a company spokesman said in a statement. “This new small team is exploring many different applications. We don’t have anything further to share.”
 
WhatsApp, the company’s encrypted mobile-messaging app, is popular in India, with more than 200 million users. The country also leads the world in remittances -- people sent $69 billion home to India in 2017, the World Bank said this year.
 
The past year has seen a boom in crypto projects related to stablecoins. At one point, there were more than 120 ventures related to this theme, according to Stable.Report, a website that tracks stable tokens. The concept was created to create a digital coin that would be far easier to use on daily purchases because it would be more stable than currencies like Bitcoin.
 
The idea has proven tough to carry out in real life, with at least one high-profile project shuttered in recent weeks. A stablecoin known as Basis recently closed after eight months. The Hoboken, New Jersey-based company said there was no apparent way around being classified as a security as opposed to a currency, which could significantly reduce the number of potential buyers. The swift collapse came after Basis drew well-known backers like Andreessen Horowitz and Kevin Warsh, a former governor of the U.S. Federal Reserve.

 
 

Perhaps the most high-profile stablecoin to date, Tether, has also been surrounded by controversy. While Tether’s creators say each of its tokens is backed by one U.S. dollar, the company’s refusal to be audited has raised questions about whether that’s the case.
 
Facebook, which has 2.5 billion global users, more than $40 billion in annual revenue and greater experience navigating regulatory issues, may have a better chance of making a stablecoin that sticks. It would be the first large technology company to launch such a project. The company’s relationship with India has been fraught, mainly because some instances of fake news spread through WhatsApp have led to violence there. Still, Facebook sees tremendous growth opportunity in the country. India has 480 million internet users, second only to China. That number is projected to grow to 737 million by 2022, according to Forrester Research Inc.
 

 
 
 
 
 

Related Topics

 
 
 

Trending News & Articles

 Article
The Top 5 Best USB/PD Phone Charger in India 2023

View Top 5 Mobile Chargers in India as on 08 Feb 2023. This rundown is compiled according t...

Recently posted . 5K views . 6 min read
 

 Article
India's Top 5 Mobile Charger manufacturer Brand 2019

The following list of India's Top 5 Mobile Charger manufacture Brand 2019  

Recently posted . 3K views . 0 min read
 

 Article
How to make you car as silent as a Rolls Royce inside

Rolls Royce cars are extremely luxurious. While there are many expensive pieces of equipment in Rolls Royce cars, their most relaxing feature is the silence that ...

Recently posted . 3K views . 2 min read
 

 Article
Mahindra XUV300 vs Maruti Brezza, Ford EcoSport, Tata Nexon – Price

XUV300 is the latest entrant in the compact SUV segment.

Recently posted . 3K views . 0 min read
 

 
 

More in Electronics & Gadgets

 Article
SIM Hacking Tool in Use Widely to Spy, Steal Data from Android, iOS Devices Globally

The SimJacker vulnerability, uncovered by AdaptiveMobile Security, exploits a common SIM card flaw, which even affects eSIM and IoT devices.

Recently posted. 914 views . 1 min read
 

 Article
Best Electronic Weighing Machine for Shops

Electronic weighing is the most accurate method used to measure the weight of products nowadays. They are commonly used in grocery stores, candy stores, general sto...

Recently posted. 946 views . 2 min read
 

 Article
WhatsApp's new update may leave you embarrassed in front of family, friends; here's how

The new update could also cause embarrassment to people who share personal and sensitive video content. Anyone who wishes to avoid any awkward moments would now h...

Recently posted. 992 views . 1 min read
 

 Reviews
Top 10 Best Inverter Batteries in India With Price 2019



Recently posted . 1K views . 99 min read
 

 Article
Samsung Galaxy Note9 design leaks through CAD-based renders and video

Earlier today a rumor told us that the design of Samsung's upcoming Galaxy Note9 would be virtually unchanged from its predecessor's, in order for the com...

Recently posted. 781 views . 2 min read
 

 Article
Tata Nexon Creates History With 5 Star Global NCAP Crash Test Rating

The subcompact Tata Nexon SUV has aimed for the stars quite literally! The Nexon has the maximum possible stars with a record-creating 5 star crash safety rating ...

Recently posted. 1K views . 1 min read
 

 
 
 

   Prashnavali

  Thought of the Day

Education is the best friend. An educated person is respected everywhere. Education beats the beauty and the youth.
Anonymous

Be the first one to comment on this story

Close
Post Comment
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST


ads
Back To Top