Back in May 2018, Facebook had announced that it was looking into ways to form a team to look into cryptocurrency related technology. However after that there was no news. Now it seems like Facebook is “building a digital payments system for WhatsApp, its end-to-end encrypted messaging app. It would let users send and receive cash without having to pay fees.”
Social media giant Facebook seems to have a team of 50 that are working on some sort of technology that will allow members to send digital money to each other. Before, this idea was quite popular but did decrease over the past couple of years. However Facebook does not seem to be influenced by this decrease and wants to come up with something that will help their 2 billion members manage day to day money transfers.
According to the Times, this cryptocurrency project of Facebook would like to come up with a cryptocurrency that is apparently going to be a “stablecoin.” This means that it will not fluctuate and users do not need to worry about its value. Though Facebook didn’t make any comment concerning this, it did confirm that they are working on a blockchain. A statement was made saying, “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.”
The office itself is another story. According to CNBC there is a completely different office with a key card that other Facebook employees do not have access to. The team is headed by former PayPal President and Vice President of Facebook Messenger David Marcus and also has Kevin Weil ex Instagram Vice President of product as part of the team. In May 2018 Marcus said, “After nearly four unbelievably rewarding years leading Messenger, I have decided it was time for me to take on a new challenge. I’m setting up a small group to explore how to best leverage blockchain across Facebook, starting from scratch.”
Back in December Bloomberg reported that Facebook was looking for a means that would allow users to send digital money through WhatsApp (which is owned by Facebook). Bloomberg correctly reported that “The company is developing a stablecoin- a type of digital currency pegged to the U.S. dollar—to minimize volatility, said the people, who asked not to be identified discussing internal plans. Facebook is far from releasing the coin, because it’s still working on the strategy, including a plan for custody assets, or regular currencies that would be held to protect the value of the stablecoin. The people said.”This new currency could come out as early as the first half of 2019.