Facebook Plans To Launch Its Own Cryptocurrency

Facebook coin? This is not the first time the idea of a coin has been floated, but the plans take on some greater meaning in light of Facebook’s recently reshuffled executive structure and its recent plan of exploring the blockchain technology and now the company might be contemplating launching its own cryptocurrency.

Facebook is said to use the cryptocurrency to facilitate transactions on its platform. The shift by the Tech giant would definitely be a monumental shift given Facebook’s huge user base and market influence.

Facebook is “very serious” about launching its own cryptocurrency, according to a report from Cheddar. The report added that: “Facebook is specifically interested in creating its own digital token, which would allow its more than two billion users to facilitate transactions without government-backed currency.

In a New Year Resolution post in January, Facebook CEO, Mark Zuckerberg mentioned that his company was open to research the blockchain tech. Last week, according to a CNN report, Facebook announced that it has formed a team, led by a Facebook exec David Marcus, dedicated to study the blockchain technology.

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The company is also looking at other ways that it could use this core blockchain technology that underpins these popular cryptocurrencies like Bitcoin and Ethereum,” said Alex Heath, a senior reporter at Cheddar. The social media network doesn’t have plans to on holding the so-called initial coin offering (ICO) by offering a limited number of virtual tokens for the public to buy at a set price,” the report on Friday.

Speaking of ICOs, firstly the company has already a good looking balance sheet and secondly, it won’t sell crypto coins with its already-battered reputation. Instead, the company might just airdrop them or reward them to the users.

The company later said in a statement:  “Like many other companies, Facebook is exploring ways to leverage the power of Blockchain technology. This new small team will be exploring many different applications. We don’t have anything further to share” and added by David Marcus, currently the executive in-charge of Facebook Messenger, said in a post which explain that: “I’m setting up a small group to explore how to best leverage Blockchain across Facebook, starting from scratch,”.

As interesting as this news sounds of the social media network supposed blockchain and cryptocurrency plan, it would likely be up to a year before it can actually materialise, Cheddar reports.