Facebook to launch a stable crypto currency

[Brendan Burgess]

https://www.straitstimes.com/tech/f...tocurrency-for-whatsapp-transfers-sources-say

NEW YORK (BLOOMBERG) - Facebook is working on making a cryptocurrency that will let users transfer money on its WhatsApp messaging app, focusing first on the remittances market in India, according to people familiar with the matter.


The company is developing a stablecoin - a type of digital currency pegged to the US dollar - to minimise 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.

 

[tecate]

It's an interesting development. They've been looking at this for some time.

It remains to be seen what this will mean for crypto generally. On the one hand, it will result in major exposure for a cryptocurrency - which in and of itself is huge.

However, it will be a centralised crypto with none of the advantages of decentralised digital money. Some are already uneasy with Facebook's access to our private data - their own crypto will provide them with so much more data.

I'm unsure what effect it will have on decentralised crypto's. Perhaps exposing people to one form of crypto will facilitate their use of others. Hard to say.

 

[NoRegretsCoyote]

It's not a cryptocurrency as it wouldn't use a decentralised, distributed ledger.

It's a system of vouchers which are redeemable at par with the US dollar, presumably guaranteed by facebook.

 

[RETIRED2017]

It's not a cryptocurrency as it wouldn't use a decentralised, distributed ledger.

It's a system of vouchers which are redeemable at par with the US dollar, presumably guaranteed by facebook.

I came to the same conclusion not the same as a cryptocurrency no matter how I read it,
Redeemable at par with the US Dollar,

 

[noproblem]

Nothing in any article i've seen, including the one quoted above, that aren't anything but total assumptions and written by no named people. Everyone and his mother with massive exposure like for example what Facebook have, would indeed be very keen to introduce a form of currency which would trade as such, but apart from unknown people writing about it there's nothing on it.

 

[tecate]

Nothing in any article i've seen, including the one quoted above, that aren't anything but total assumptions and written by no named people. Everyone and his mother with massive exposure like for example what Facebook have, would indeed be very keen to introduce a form of currency which would trade as such, but apart from unknown people writing about it there's nothing on it.

Sure, this is not in any way official confirmation - it's not even remotely unofficial confirmation given that the sources are not revealed.

Having said that, what we do know is that Facebook established a blockchain tech team with a view towards looking at potential use cases relative to Facebook - for the technology. They brought in David Marcus to head it up. Marcus was formerly the head of online digital payments company, Paypal. Furthermore, he was appointed to the board of directors of leading cryptocurrency exchange Coinbase in January before being appointed to this role with Facebook in May. He resigned from the Coinbase board upon taking up the position with Facebook.

I think it's only a matter of time before Facebook introduce a crypto - and the same with Amazon, google, etc. However, I think it's far more likely that they will develop their own centralised cryptos. How this will all play out remains to be seen.

 

[NoRegretsCoyote]

The several hundred million Indians who use whatsapp will have absolutely no interest in:

• A payment system that is tied to the US dollar, when they get paid, and pay their taxes, in rupees; given that the dollar fluctuates against the rupee a lot.
• A true cryptocurrency whose value fluctuates hugely against every currency, all the time.

At the small scale people overwhelmingly deal with people nearby, in whatever currency their country uses. The best that facebook can do is provide a voucher system (perhaps using blockchain) denominated in major currencies.


Repeat: this is not a cryptocurrency by any definition.

 

[tecate]

The several hundred million Indians who use whatsapp will have absolutely no interest in:

• A payment system that is tied to the US dollar, when they get paid, and pay their taxes, in rupees; given that the dollar fluctuates against the rupee a lot.

That remains to be seen. Bloomberg defined a stablecoin as a coin that tracks the U.S. dollar. Unless their 'sources' told them that FB plan on a stablecoin that tracks the USD, it could just as easily track the rupee. 2018 has seen a plethora of stablecoin projects emerge, some backed by FIAT (various - USD, YEN, Euro, CHF) or a mix of various FIAT, etc. Likewise with gold.

The several hundred million Indians who use whatsapp will have absolutely no interest in:

• A true cryptocurrency whose value fluctuates hugely against every currency, all the time.

This isn't a true crypto - it's a centralised ...well, many involved in crypto describe it as a centralised 5hitcoin. As regards fluctuation, crypto market cap is miniscule. As it grows it will improve but of course we're talking long term. As it stands today (should everyone want to sell their bitcoin to him and they wouldnt) Bill Gates could buy up every single BTC in circulation.

Repeat: this is not a cryptocurrency by any definition.

For sure, you're quite right. However, I've come to temper my views on how this all works and how it will work out. I think there are applications where total decentralisation is unnecessary. Alongside that, there are many people who simply don't care about decentralisation. I'm keeping an open mind as to how this will all pan out but with increased institutionalisation within the space, we're likely to see more psuedo decentralised crypto's being promoted.

I really can't decide if this Facebook offering (if and when it emerges) would be good for crypto generally. I'm wary of the view expressed here in that regard.