The entrance of Facebook into the digital currency space has got a lot of people talking. A lot of companies and industries are now creating their own digital currencies. JP Morgan recently launched its own digital currency – JP Coin. The bank plans to use the digital currency to process transactions on its platform. The digital currency market is expanding every day, with more than 2,000 altcoins in the market.
Investors and traders are now left with too many options to choose from. This is just like before the Federal Reserve when the U.S. had about 8,000 types of money. It was really confusing and chaotic for buyers. Banks were issuing notes with the promise of being backed by silver and gold. Individuals were now confused about which money to use. That era is now replicating itself now, with the emergence of digital currencies.
Facebook Soon To Launch Its Own Digital Currency
Facebook – social media giant – recently disclosed plans to launch its own digital currency. The New York Times recently disclosed further details about the progress of the firm so far. According to the New York Times, the first debut of Facebook into the blockchain space will take the form of a stablecoin. The social media giant wants to come into the crypto market with a stablecoin.
The firm is aimed at tamping down tumult and speculations that have affected other digital currencies, such as Bitcoin (BTC). The firm’s idea is to make the digital currency easier to use. To enable you to someday use it to purchase meals and gas.
Over the past months, the social media giant has built a very strong blockchain team. According to reports, the blockchain team of the firm now comprises more than fifty persons. The office of the team is also restricted to other employees in the company. The office has restricted key access, which cannot be accessed by other workers.
The Product is Coming Soon
According to the report, the final product is expected to be ready in the next six months. The blockchain team of Facebook is headed by David Marcus. Marcus was formerly the head of the messaging app of Facebook – Facebook Messenger. Marcus was transferred and made the head of the blockchain team in April last year.
According to Facebook, the new digital currency would be used on WhatsApp. It would leverage the connection between the 1.5 billion users of the application. It would even be exposed to billions more if it comes to Facebook and Instagram. If this happens, it would make it a very strong rival to Venmo and PayPal, as well as the WeChat Pay of China.
Nevertheless, none of those firms send money using a blockchain. They are not even using their own digital currency. Users of WeChat make payments in Yuan. Whereas, Venmo users make payments in USD. The digital currency of Facebook is backed by multiple currencies. This is a very big advantage for the firm. With this, its users can make cross-border payments at a very affordable rate. The entrance of Facebook Coin into the crypto might attract more investors into the digital currencies space. This might have a significant impact on the value of top digital currencies in the near future.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin (BTC) is currently trading at $3,908 after an increase of about one percent over the past twenty-four hours. The current market cap of the digital currency is $67.15 billion and its trading volume over the past twenty-four hours is $5.43 billion.