Facebook is reportedly working on a cryptocurrency to allow WhatsApp users to transfer money.
Revealed by Bloomberg, the exact details are yet to be revealed, but sources claim it will be a stablecoin, pegged to the value of a dollar. The technology will initially focus on sending remittance payments in India.
As previously reported by Block Explorer, Facebook has been on a hiring spree lately, adding to its 30+ blockchain team, lead by former Coinbase board member David Marcus.
Don’t expect the Facebook coin to launch anytime soon. The team has some huge hurdles to overcome first. Specifically, Facebook will need to develop a custody solution in order to safely store the coins.
If Facebook is working on a stablecoin, they will also need a reserve of fiat currency to back the value. Other stablecoins, like Tether, have come under fire for failing to prove their true dollar backing.
India Remittance Payments: A Multi-Billion Dollar Market
Remittance payments (sending expatriate funds back to the country of origin) is big business in India. The country tops the global leaderboard in remittance payments, with almost $69 billion received in 2017 alone. Total global remittance payments are expected to grow 3.4% this year.
Facebook can plug into more than 200 million WhatsApp users in India, allowing them to quickly and easily send and receive payments.