It is a well-known fact that Facebook is working to develop its own cryptocurrency, but now the latest reports suggest that the social media giant can launch its cryptocurrency as soon as this semester. Anonymous sources privy to the development confided that before the end of this particular semester, Facebook’s cryptocurrency would be in the market. The information was revealed by the New York Times which had got its hands on this very confidential new through sources who didn’t wish to be identified. Adoption of the concept of cryptocurrency by one of the largest social media and technology companies in the world is definitely a welcome move, and crypto enthusiasts are upbeat about it.
Stablecoin for Stability
Another revelation associated with the project says that Facebook is developing a stablecoin rather than a cryptocurrency whose value is considered highly tumultuous and fluctuating. This means the users of Facebook stablecoin will not be affected by the fluctuating prices of Bitcoin and other cryptocurrencies which is indeed a good starting point to encourage people to adopt digital coins. Experts are unanimous that Facebook will use its stablecoin primarily for the WhatsApp platform which is among the largest messaging platforms in the world. The significance of stablecoin lies in the fact that its value can be attached to regular fiat currencies which shield it against market fluctuations. We can compare the use of Facebook’s upcoming stable coin with the cryptocurrency developed by Wechat – a Chinese messaging Application which is a direct rival of WhatsApp. Market analysts also believe that it would be wrong to pit blockchain technology of Facebook against the blockchain project that is being undertaken by a Russian firm, the Telegram. Just so you know, Telegram had successfully raised $1.7 billion in its initial coin offering (ICO) in March last year.
Effect on Overall Crypto Industry
The foray of the large companies into the cryptocurrency and blockchain technology has given a new ray of hope to investors. As these companies are coming up with their own proposals to improve further the processes and systems related to digital coins and technologies, investors are hoping a turnaround in the fortunes of the industry. The ongoing bear market could also gain momentum from these developments and register some much-needed gains to cheer up spirits. Echoing the sentiments, Eric Meltzer who is the co-founder of a venture capitalist firm operating in the domain of cryptocurrency said that it’s quite fascinating to watch these developments unfold every day. The big companies have their advantages, and it would be insane to watch these organizations taking the challenge and fighting it out, added Meltzer.
Facebook has maintained a high level of confidentiality regarding its crypto project. The team working in the blockchain division of the company has got its separate space, and they function in isolation from other employees of Facebook. In order to enhance the adoption of its stablecoin, Facebook is planning to peg its currency to a number of Fiat currencies rather than attaching it only with the US dollar. This will facilitate a large number of users belonging to different countries to use its stablecoin for making transactions and other purposes. The company will guarantee the value of stablecoin by attaching its value against other fiats such as the US dollar, Euros, and some other national currencies it holds in its accounts across different countries. In a related development, Telegram has assured its investors that its blockchain project named Telegram Open Network (TON) is 90% complete and the company will soon launch it in Asian trading exchange.