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According to a recent report by Bloomberg, a new stablecoin project may be in the pipeline. This project is said to be pioneered by one of the largest internet companies in the world, Facebook.
Although an official statement about the project is yet to be released, some birds from inside let Bloomberg in on some in-house secret about the ongoing project. The stablecoin is proposed to allow users to transfer money through their WhatsApp platform. This project is specially targeted at the India remittance market as it seems to be one of the leading remittance markets across the globe, recording about 69 billion USD in 2017 only.
While it seems like there is so much untapped potential in the market, it is, in fact, a trial and error attempt as the Indian government has been on Facebook neck for some time now, since the violent outbreak that stemmed from rumors spread through WhatsApp. However, Facebook remains undeterred, focusing on the potential in the market. According to the report by Bloomberg, India houses a huge number of WhatsApp users, totaling over 200 million users at the moment. A number which is proposed to double by 2022 according to Forrester Research.
The little birds also disclosed that the project is yet in its infancy stage as they are still working on its strategy. Including the plan for custody assets as all stablecoin must be pegged to fiat currency to minimize its volatility.
The crypto project has been long expected since 2014 when Facebook hired David Marcus, PayPal former president, to manage its Messenger app. Marcus was made the head of Facebook’s blockchain initiatives and since then, over 40 people have been employed as members of the blockchain team.
When asked to comment on the ongoing project, a spokesman stated that there is nothing much to say and that Facebook is just leveraging the Blockchain technology like other companies. He added that the duty of the new blockchain team is to explore different applications of blockchain technology.
The idea is such a good one but skepticism still lurks around due to past failures in the stablecoin space. Facebook is just one of the hundreds of companies who have, at a point in time, moved to leverage blockchain technology through stablecoin. Most of these moves yielded very little success, with at least one big project crashing each week.
With over $40 billion in annual revenue, 2.5 billion users across the globe, and a few years of experience navigating regulatory issues, one may hope that Facebook has what it takes to bring this dream to fruition.