A year has passed since Facebook updated us about its tightlipped Blockchain team.
All this time, we wondered if the social network has concrete plans to use if to for digital currency exchange.
Now reputable media firms have come forth to reveal some leaks and notes.
If the reports are accurate, what we are about to see may be a key shift for company. And it may sway the course of ecommerce.
The New York Times reported in March that Facebook is set to launch its own cryptocurrency.
The offering will let you use Facebook apps to exchange money with friends without middle men or extra fees.
Facebook wants to focus on the Indian market before its goes global.
India has the highest amount of money transfers between family members. And cryptocurrency offers an easier option.
Facebook seems intent to expand its presence in the world’s second most populous nation.
These types of payments will give Facebook the foundation to expand to other means of fund transfers – all within the platform for a streamlined global currency exchange.
Recent reports suggest that Facebook wants bigger fish to fry.
The Wall Street Journal reports that the social network is working on an in-house cryptocurrency payment network to compete with credit cards.
“Facebook Inc. is recruiting dozens of financial firms and online merchants to help launch a cryptocurrency-based payments system on the back of its gigantic social network. The effort, should it succeed, threatens to upend the traditional, lucrative plumbing of e-commerce and would likely be the most mainstream application yet of cryptocurrency,” says the WSJ report.
The offering appears to be stablecoin, a cryptocurrency with value tied to traditional currency markets.
Facebook needs support from financial firms for insurance against the ebbs and flows in bitcoin markets.
Not only will the company help in basic fund transfers, but it will position its payment network as a direct rival to MasterCard and Visa.
How it will work
When this comes to fruition, your existing Facebook credentials will let you have reduced fees and charges on traditional funds transfers and help in direct, international payments within the platform.
“One of Facebook’s big strategic advantages is the fact that a fair number of websites already use Facebook APIs to allow users to log in using their Facebook credentials. It could be a straightforward matter to extend that existing infrastructure to allow users to make purchases on third-party websites using their Facebook credentials,” Ars Technica reports.
The coins will likely extend to Instagram, Messenger, and WhatsApp. It gives you a walled Facebook wallet to pay for products or services on all those apps.
Who wouldn’t want a one-click shopping for Facebook’s various apps and partner sites?
“Facebook’s also considering paying users fractions of a coin to watch adverts, engage with other content, or shop on its platform,” Business Insider reports.
Let’s see how Facebook will implement this in the coming days.