In another story of sector growth during the bear market, major social media player Facebook is reportedly creating its own crypto asset.
In a bout of fresh news, The New York Times said Facebook reportedly plans on diving into crypto asset development. The asset will look to see global payment usage on Facebook’s media message platform, similar to Venmo.
According to several anonymous individuals The New York Times spoke with, Facebook is cooking up a digital asset for its daughter company, messaging platform WhatsApp. The Big Apple publication also talked to several other individuals who noted Facebook has already reached to crypto exchanges in order to discuss matters related to listing the coin.
Venmo is known to have blazed a successful trail in the U.S. mobile payments category, seeing wild success and revealing a demand for such a product. WeChat also employs a payment system that has taken China by storm. As detailed in a July 2018 report from CNBC, WeChat Pay utilizes smartphones to pay via a barcode, accessing funds from Chinese customers’ bank accounts. “WeChat has over 1 billion users and around 800 million of them use the WeChat Pay function,” CNBC included.
A secretive endeavor
According to a statement The New York Times received, Facebook did not firmly acknowledge the building of such an asset.
In December of 2018, Crypto Insider reported on Facebook’s filling of multiple blockchain roles. The New York Times article mentioned “Facebook has more than 50 engineers working on its project,” according to “three people familiar with the effort.” Facebook’s coin operation reportedly began in 2018, and is led by David Marcus, one of PayPal’s previous top brass.
The Times article noted Facebook’s project is under tight wraps. “Facebook has been coy about what it is building. The team is in an office with separate key-card access so other Facebook employees cannot get in, according to two Facebook employees”, the article revealed.
A stablecoin this year?
Three other in-the-know individuals explained to The New York Times that Facebook’s coin looks to be a stablecoin of sorts, but might have its value derived from a pile of several global currencies, as opposed to the commonly-seen single, dollar-pegged variety. “Facebook could guarantee the value of the coin by backing every coin with a set number of dollars, euros and other national currencies held in Facebook bank accounts,” The Times explained.
The public might see Facebook’s coin within the first six months of 2019, according to The Times coverage of Facebook workers’ correspondence with crypto exchanges.
A separate New York Times Article included that Facebook Messenger, Instagram and WhatsApp, Facebook’s three platforms, will join together, which ultimately might give the new Facebook coin a tremendously large customer base.