Facebook has announced to form a Blockchain team. There is no detail about what the team will focus on but we can assume that there will be some on data processing and most importantly about payment options. Facebook, a media company, has already disrupted banking system with direct payment on Messenger. This new step, if succeeds, will absolutely change the course of fintech to newer heights.
A massive lead for financial technology
This will be a massive lead for banking industry. Facebook will be a bigger thread or partner with this step for banks than Fintech startups. Even though fintech startups are coming with lots of innovations every day, they don’t have that big amount of customer base and power. But we can expect some Blockchain and Fintech startup acquisitions on Facebook side.
Can Blockchain solve fake news, data scandal and political ad problems?
Other than banking features, for sure, Blockchain will help a lot also on data problems for Facebook. We can see that this step came just after the data scandal. Fake news and Russian integration on elections with Facebook ads issues can also be solved with Blockchain Technology. Identity verification will be one of the biggest advantages of Blockchain for Facebook.
Will Facebook launch its own cryptocurrency?
By the way, I don’t think Facebook will launch its own cryptocurrency until regulatory standards are better defined and market volatility matures. Facebook has banned all crypto related and Initial Coin Offering ads on the platform, citing them as being deceptive. But this doesn’t mean that it will not use currency transactions on Blockchain with finding some solution. They are also open to review the ad policy as always with new changes.