It appears that the rumors were true. Social media giant Facebook is preparing to launch its own cryptocurrency according to multiple reports. Although Facebook has not publicly confirmed the plan, it has been known for some time that the company founded by Mark Zuckerberg was quietly engaged in blockchain research and development. The Facebook coin is rumored to be called the libra coin.
This project would explain Facebook’s recent decision to block advertising on its platform for ICOs, or Initial Coin Offerings, from other digital token platforms. It looks to have been a preemptive strike to limit the use of Facebook for advertising the tokens of rival blockchains. Now, the world must wait to see what kind of cryptocurrency Facebook develops and how it will be used.
Facebook Crypto Project Shrouded in Secrecy
Few specific details have emerged about Facebook’s blockchain and cryptocurrency development. Some of the things that are known at present are significant. For one, the company assembled a team that is led by a former PayPal executive. David Marcus is said to be overseeing the development of an asset-backed token that will work with all the social media platforms that Facebook controls. This would include Facebook itself as well as WhatsApp, Instagram, and Messenger.
The BBC has recently reported that the name presently given to the Facebook cryptocurrency is Global Coin. The same article also states that the token could be made available by the first quarter of 2020. Others have stated that Facebook has been developing a blockchain framework since 2017.
There is little doubt that the ICO and release of a Facebook token would generate excitement among crypto investors similar to the excitement that was created when Facebook announced that it would go public. There was an initial rush to purchase the company’s stock, but this enthusiasm dimmed some over time and the IPO is generally thought to have failed to satisfy high expectations.
Marcus has vast experience in the world of cryptocurrency. He has served on the board of directors for Coinbase, one of the world’s largest and most trusted cryptocurrency exchanges. Marcus previously oversaw the development of Messenger at Facebook. The experience working with Messenger and WhatsApp may have been an indicator that Facebook was looking into its own crypto.
WeChat is a similar platform that is used in China. The WeChat platform has payments functionality. Marcus’ experience with PayPal may have also played a role in his selection. Not long after Marcus assumed the helm of Messenger, the chat platform made it possible for individuals to send fiat currency to one another.
How Facebook Crypto Could Change the Game
Cryptocurrency is something that has yet to be embraced on a global, mainstream level. By this we mean that the people interested in crypto form sort of their own group. The masses, in contrast, have very little knowledge of how blockchains work or how cryptocurrency is created and used. A Facebook token could change all of that in a very big way.
Facebook has the potential to expose cryptocurrency to a massive audience that includes millions of people who have no experience with Bitcoin, Ethereum, or other tokens. This could affect the current crypto market in a variety of ways. A deluge of new investors could send prices soaring, or it could cause the market to crash. There is no way to say for sure what will happen.
What can be said without any fear of contradiction is that a Facebook cryptocurrency coin will prompt more global acceptance and use of crypto. This is likely to send more projects into development and encourage further exploration of blockchain technology. Those can’t be bad things, all things considered.
Facebook Acquires a Popular Blockchain Company
It was announced in February of 2019 that Facebook had acquired the British blockchain company known as Chainspace. It has since been revealed by insiders that Facebook’s interest in Chainspace was not the company itself, but rather the individuals in its employ.
Taking over an entire company just to hire the people that work for it may seem like an extreme measure, but it actually makes sound financial sense. The amount of money that Facebook invested in the acquisition may have been far less that what Facebook determined it would cost to hire and train and entire staff for its own blockchain management.
With that being said, Facebook has also made many job postings in 2019 for individuals with blockchain technology experience.
All Signs Point to a Facebook Cryptocurrency
All the indications are that Facebook will ultimately launch its own digital token in the near future. Could other tech giants like Google be far behind? How will the cryptocurrencies developed by these companies be used? These are all questions that cryptocurrency investors would like to see answered in the near future.
We expect that Facebook will incorporate the use of digital tokens in its vast online gaming platform. They may also make it possible for individuals to buy advertising on their platform with crypto. This would be very ironic given the stance Facebook took against ICO advertising.