Facebook Working On Their Own Cryptocurrency – It Can Enable Whatsapp Payments In India
Facebook's own cryptocurrency will be pegged to the USD.
Facebook, which now controls and owns Whatsapp has been trying to get Govt. of India’s approval for launching UPI-based payments on Whatsapp app. But due to regulatory issues, only testing has been allowed till now.
Soon, Facebook’s own cryptocurrency will be launched, which can enable Whatsapp payments, seamlessly. Does this mean that they can even bypass Govt. permission?
We try to find out!
Facebook Developing Their Own Cryptocurrency
As per incoming reports, Facebook is developing their own cryptocurrency, which will be based on StableCoins.
Facebook’s first cryptocurrency will be pegged to the USD.
Interestingly, Facebook had banned all cryptocurrency related ads on its platform.
Advantage Of StableCoins & Why Facebook Chose It?
StableCoins have been developed to introduce stability in the volatile market of digital currencies. StableCoins are almost like a centralized currency, which is pegged to traditional currency and often used for trading metals or commodities.
Facebook’s decision to choose StableCoins as the base of their first cryptocurrency proves that they want a stable, non-volatile cryptocurrency, which doesn’t fluctuate too often and provide users with an assured value, like USD or INR.
Who Is Behind This Crypto Idea?
Most probably, it is former PayPal president David Marcus, who was hired by Facebook for running their Messenger service.
However, it seems that David how heads Facebook’s team for blockchain research and development, as more than 40 people are right now working at Facebook for developing their blockchain based products. (based on Linkedin data)
A company spokesperson said, “Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications. We don’t have anything further to share.”
Will This Digital Currency Power Whatsapp Payments
Whatsapp, World’s biggest messenger app with billions of users, is likely to be the platform where Facebook’s first cryptocurrency will be used for payments.
LiveMint reports that Facebook will roll out this cryptocurrency based Whatsapp payments in India first, as the market is now ripe for such technology and feature.
Remittance is the niche which Facebook is aiming to target for India, when it comes to Whatsapp payments. More than $60 billion was remitted by NRIs to India, and this is a big market which Facebook wants to capture.
Whatsapp has more than 200 million users in India.
Can Facebook Bypass Govt Over Whatsapp Remittance?
Whatsapp had started rolling out beta version of Whatsapp payments in India, since February this year. Final version was expected to be launched in May, but in June, NPCI, which oversees all digital payments in India, questioned some features and mechanism of Whatsapp payments.
Since then, the approval has been stuck in red tape, and there has been no news.
In case Facebook’s own cryptocurrency is employed for Whatsapp payments and used for remittance related transactions, then it can again come under Govt. scanner, as crypto-based transactions are not allowed in India.
We are awaiting more information on this development. Stay tuned!