Facebook is creating a digital currency that will allow users to transfer money to messaging and messaging, focusing primarily on the remittance market in India, according to people and sources familiar with the issue.
The company is working to develop a stable digital currency backed by the US dollar as they are still working on strategy development, including a plan to keep these assets or ordinary currencies to protect the stable value, the sources said on condition of anonymity.
Facebook has long been expected to move in financial services after David Marcus, the former president of PayPal, was appointed to manage the Messenger application in 2014. In May, Marcus became head of the company’s Blocin initiatives, which were not discussed generally. Facebook has been trying to recruit as many people as possible, and now has about 40 people in the group, according to the addresses of employees on LinkedIn.
A spokesman for the company said in a statement:
“Like many other companies, Facebook is exploring ways to take advantage of the power of pluxin technology. This new small team will explore many different applications. We do not have any other details that can be shared now “
Watsab, the company’s encrypted mobile messaging application, is widely used in India, with more than 200 million users. India leads the world in remittances – people sent $ 69 billion to India in 2017, the World Bank said this year.
Stable digital currencies
Last year witnessed a boom in stable digital currency projects. At one point, there were more than 120 related projects, according to a stable currency tracking website. This concept was created to create a digital currency that can be used more easily in day-to-day purchases because it will be more stable than digital currencies such as Betquin.
This idea proved to be difficult to implement in real life, with at least one high-level project closed in recent weeks. Where a stable currency project known as Basis was recently closed eight months later. The company, based in Hoboken, New Jersey, said that because there was no clear way to classify it as securities instead of a currency, it could significantly reduce the number of potential buyers. The rapid collapse came after Basis enlisted help from well-known supporters such as Andersen Horowitz and Kevin Warsch, former governor of the US Federal Reserve Fund.
Perhaps the most prominent stable currency yet, Tether, is still surrounded by controversy. While Tether’s founders say that each currency is supported by one US dollar, the company’s refusal to review has raised questions about whether this is the case.
Facebook, which has about 2.5 billion global users with annual revenue of more than $ 40 billion and has more experience in regulatory issues, may have a better chance of creating a stable, stable digital currency. It will also be the first large technology company to launch such a project. The company’s relationship with India has been precarious, mainly because some of the false news spread across Watsab has led to violence there. However, Facebook may witness a huge growth opportunity in the country. India has 480 million Internet users, and India is second only to China. This figure is expected to grow to 737 million by 2022, according to Forrester Research Inc.