Social media giant Facebook is developing cryptocurrency and will soon allow users to perform currency exchange via its encrypted chat service WhatsApp.
It is planning to create a ‘stable coin’ that will enable the users of its social messaging platform, WhatsApp for transferring money to friends and family. Stable coins are cryptocurrencies are exclusively planned to minimise the effects of price volatility. According to the industry reports, popular chat platform WhatsApp has over 200 million users in India.
Reportedly, Facebook is primarily targeting the remittances market of India. World Bank of India says that India is the leading recipients of remittances. Experts believe that if WhatsApp succeeds in launching its payment services in India, it will have high growth opportunities.
“Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology,” said a Facebook spokesperson.
“This new small team is exploring many different applications. We don’t have anything further to share,” added the spokesperson.
In 2014, Facebook hired David Marcus, former President, PayPal for handling its Messaging Products. Marcus is heading Facebook’s blockchain domain and a part of Coinbase, a digital currency exchange.
With over 2.5 billion global users and over $40 billion annual revenue, Facebook may have a better scope of making a stable coin that sustains. If it gets launched then it will first large technology firm to unveil such product.