Facebook is reportedly planning its own Stablecoin — here’s what you need to know. Cryptocurrencies have always been one of the hot topics in the tech industry. We’re not going to talk about the advantages and disadvantages of the bitcoins or something like that. In fact, the news is about the Tech Giant Facebook reportedly heard of working on launching its own stablecoin.
Now, if this turns out to be true, then Facebook will be the largest company in the world to exploit blockchain technology.
Although, blockchain currencies like the Bitcoins haven’t been quite stable for quite some time. The prices have gone up and down by huge margins and never seem to be stabilized properly. Bitcoin, for example, hit a record high of nearly $20,000 one year ago, today its price is just over $4,000 but, symbolically, it fell below that figure in recent months. The ride for ‘altcoins’ has been even bumpier.
Yes, it still seems some sort of a risk to deal in cryptocurrencies but with their popularity on the high, the cases of mishappenings have also been on the decline side.
“Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications. We don’t have anything further to share.” This is what came out in a report officially from the Facebook side. It does come into the mind as to what strategy Facebook might be building behind all this? Well, one may speculate that Facebook wants to expand its horizons completely in the entire Internet market to make sure it keeps itself standing in its position giving a tough competition to others.
On the other hand, Facebook seems to be targetting developing Asian Countries like India where there’s a huge potential in the sector. The popularity of UPI based apps in the country clearly indicate how the majority of the country’s population is now into online transactions and prefer using digital mediums rather than old-fashioned methods.
The ever-changing tech industry demands others to change as well. The demise of good old Nokia is a perfect example of the scenario. There’s a quite high chance that Facebook will start the stablecoin stuff for WhatsApp, The highly popular social messaging app.
The launch of the purported stablecoin may still be far off. According to the sources, the company is still working on the strategy, including a plan for custody assets or regular currencies, which would be held to protect the value of the stablecoin. WhatsApp had earlier this year launched UPI Money transfer facilities for Indian Users in the app for selected beta users, but the feature seemed to have never rolled out for the stable users.
The reason behind is the sluggish and slow approval of the government in most cases. What do we mean by that is the WhatsApp’s UPI Interface hasn’t yet been permitted by the government to be used throughout the country. Such activities stand another question whether bringing up such innovations in the field of currency and banking do even seem to be fruitful for the end user?
Also read – Bitcoin Explained.