Facebook Plans to Release its Own Digital Currency Backed by the US Dollar – Named ‘Stablecoin’
Last updated July 12, 2021
- Facebook is said to be working on launching its own digital currency.
- Dubbed 'Stablecoin,' the digital currency will be used on Facebook Messenger and WhatsApp for secure transactions.
- The report comes just months after the social media platform banned all other digital currencies.
Despite the cryptocurrency craze dying down and digital currencies losing value compared to the massive spike seen last year, Facebook may still be willing to break into the digital currency market with its own 'Stablecoin.' According to a report, the social media company wants to use digital currencies for transactions via Messenger and Facebook.
Facebook’s digital currency will serve as a way of transferring currency between users, and the company will be maintaining its value by linking it to the US dollar. Unlike other digital currencies that fluctuate a lot in value depending on demand, the social media company’s 'Stablecoin' seeks to be resistant to market practices.
Reports suggest that India might be the first market that Facebook will be testing the currency in. With over 200 million users in India using WhatsApp, Facebook has found a lot of financial success in the country. The Asian country was responsible for an impressive $69 billion in remittances last year. There is no official confirmation on the release date of the digital currency, and Facebook has declined to comment about it.
Facebook’s involvement with the digital currency was first spotted when a dedicated group was created by the company by bringing in former PayPal president David Marcus to study blockchain. Marcus was originally part of the Messenger team and has been a key member of the company. According to reports, the social media company is currently working out its strategy and plan for all of the assets that need to be held to protect the digital currency’s value. It is unknown if 'Stablecoin' will see enough takers as Facebook users have been quite unhappy about the platform repeatedly failing to protect user data and also being dragged into other political controversies.
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