Facebook Reportedly in Talks With Crypto Exchanges to List New Coin
March 1, 2019 by Akshay Makadiya
New reports suggest Facebook’s rumored stablecoin project is making significant headway. Anonymous sources reportedly close to the project have revealed the social media titan has approached a number of crypto exchanges to list its coin.
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Facebook’s Crypto Token to Roll Out in a Few Months
According to the New York Times, Facebook is in talks with a number of crypto exchanges regarding listing its much-awaited coin. However, the names of these exchanges have not been disclosed.
Since 2018, rumors have circulated in the crypto community about Facebook’s secretive plan to develop a stablecoin, but no concrete proof has emerged. However, this new report lends some legitimacy to these rumors, suggesting the Facebook stablecoin could soon become a reality.
New York Times claimed this news came from four people close to the project, choosing to remain anonymous due to a confidentiality agreement with Facebook. These sources told the Times that Facebook’s crypto token will be ready towards the end of Q2 2019.
According to various sources, the Facebook stablecoin will allow users to transfer money via WhatsApp Messenger — acquired by the company in 2014. The coin will be backed by a basket of fiat currencies, requiring Facebook to keep significant reserves in government-licensed banks.
As of press time, no information has emerged regarding the type of blockchain this crypto will utilize. There is also no information available regarding the number of tokens Facebook will produce, or if it will retain any of the supply for itself.
Further lending to the secrecy of this stablecoin, anonymous Facebook employees have claimed the project is being developed in an office separate from the company’s headquarters. Reportedly, this office is only accessible to employees actively working on the project.
Navigating Regulatory Obligations?
With more than 200 million users on WhatsApp, the Facebook token presents a major opportunity to introduce cryptocurrency to the mainstream. However, such exposure also comes with the risk of regulatory resistance. Pushback is nothing new in the crypto world, though, with governments expressing extreme skepticism towards the decentralized governance systems of many cryptocurrencies — namely Bitcoin.
In Facebook’s case, if it really does plan to integrate its stablecoin into Whatsapp, it will have to comply with regulations from countries all over the globe. With over $55 billion USD in annual revenue, however, such regulatory hurdles likely wouldn’t cause much trouble for the tech giant.
Other Social Media Companies Making Moves Into Crypto in Light of Facebook Rumors
With Facebook reportedly preparing to enter the crypto space, Telegram has announced plans to launch its own token by the end of 2019. In its most recent update, Telegram revealed the blockchain technology underpinning the Gram token is almost complete.
Primitive Ventures co-founder Eric Meltzer commented on the apparent crypto race between Facebook and Telegram, saying:
“It’s pretty much the most fascinating thing happening in crypto right now. They each have their own advantage in this battle, and it will be insane to watch it go down.”
What’s your take on the rumors about Facebook’s stablecoin? Share your thoughts in the comments section.
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