Facebook Developing Cryptocurrency for WhatsApp

According to sources, Facebook is developing a cryptocurrency that might enable cash transfers to be done through its messaging app WhatsApp. As expressed in the publication by Bloomberg, the company is functioning on a stablecoin pegged to the US dollar to reduce volatility.

Unfortunately for Facebook, the wave of exposed privacy breaches and violations that were initiated with the Cambridge Analytica scandal isn't yet over. A recent report from The NYT disclosed hidden arrangements between the company and select few massive companies, ranging from your friends’ contact information all the way down to some of the most private data — your personal messages.

Facebook Cryptocurrency could come sooner than we expect

As recently reported by CCN, Facebook Blockchain has ramped up hiring of blockchain developers. As of now, over 40 individuals will be found in LinkedIn once you look for Facebook workers with the term “Blockchain.”

Another report by The Block disclosed that, besides blockchain developers, the company was also searching for Head of brand, global brand Development Lead, and product promoting Lead, all of which with product go-to-market responsibilities. The PM Lead job description states:

This person will be responsible for making our product strategy for developers and consumers, managing our product go-to-market plans and coordinating a cross-functional team to bring nice solutions to connect the community.

Upon inquiry regarding the head of brand and global brand Development Lead by The Block, Facebook reportedly removed those job listings.

Why WhatsApp?

The mobile messaging app has been popular in some of the countries that have high wants for convenient and cost-efficient money transfer solutions. Such would be India, in which WhatsApp has over 200 million active users, as expressed in the publication. The country is a leader in the world once it comes to remittances — according to the world Bank, over $69 billion have been sent abroad to India in 2017 alone.

Yet Another Stablecoin

Recently there have been several emerging stablecoin projects. In fact, according to Stable.Report, there were over 120 similar ventures at some point. Sadly, as simple as the idea may sound initially, creating it a reality has turned out to be far harder than initially anticipated.

Basis  a new Jersey-based crypto stablecoin project, backed by some of the biggest VC firms in the world, as well as Andreessen Horowitz and Bain Capital Ventures, recently declared that it's terminating its operations. The reason behind the closedown of a project that raised $133 million back in April was the lack of apparent way around being classified as a security as opposed to a currency, that might significantly reduce the amount of potential buyers.

The crypto community’s most renowned stablecoin, the USD Tether, has also been under severe scrutiny and a lot of controversy due to its lack of transparency and regarding activities. Their refusal of audit has raised several queries that have yet to be answered.

Facebook  on the other hand, has over 2 billion active users and over $40 billion of annual revenue, as well as a successful track record of navigating harsh regulative environments. If Facebook is developing a cryptocurrency and launches it in the close to future, it might also be the first massive tech company to do so, essentially giving Facebook a unique advantage over the market. One question remains, though…

Why should you trust Facebook with something, anymore?

According to a recent report by The NYT which summarizes the review of over 270 internal company documents and over 60 interviews with former company staff, partners, former government officials, and privacy advocates, the social media large has been giving tech firms access to more personal information than disclosed. essentially, Facebook spared them from its privacy policies.

The report concludes that Facebook also shared all of its users’ friends’ names to Microsoft Bing, allowed Amazon to gather their names and contact information through their friends, and it allowed Yahoo to spectate on users’ friends’ posts. And the worst is perhaps yet to return — a few days ago, the Washington D.C. state filed a lawsuit against the company due to the Cambridge Analytica scandal and the 2016 elections.

Whether the company succeeds with this endeavor to “help billions of people” or not remains to be seen, but one factor is certain — Facebook is to launch a cryptocurrency.