Facebook Plans to Create its Own Cryptocurrency
If you follow the world of cryptocurrencies, you probably know that new digital currencies are introduced virtually on a daily basis. Each cryptocurrency tries to differentiate itself from its competitors, with many of them specializing in a selected field or adding features that will get investors interested.
There can soon be one new cryptocurrency that doesn’t have to try especially hard to gain the interest of potential investors and the general public. That’s because, if everything goes according to the plan, it will have the biggest social network on the internet behind itself. That’s right – according to Cheddar.com, Facebook plans to launch its own cryptocurrency.
Payment method for Facebook Marketplace and other features
According to Cheddar’s report, Facebook has been studying blockchain and its potential for almost a year now. Reportedly, the new cryptocurrency would be used to allow billions of Facebook’s users to make electronic payments within the platform, which only makes sense with increasing popularity of Facebook Marketplace and the ability to send and receive money through Messenger.
Cash and debit cards used to make these transactions happen nowadays could be easily replaced with a virtual currency, which is what Facebook employees working on the matter might be thinking as well.
This isn’t Facebook’s first attempt in creating its own currency. In 2009, the company released Facebook Credits that were used primarily to purchase virtual goods in games that were hugely popular on the platform back then. Facebook Credits never caught on and were shut down by the company two years later.
It will probably take some time
Although Facebook is already exploring the possibilities of the blockchain technology, it’s not likely we will get to see anything an action any time soon. It takes time to build new features on such a scale and we can be sure that Facebook wants to implement new features the right way.
At a summit in Los Angeles in February, David Marcus, Facebook’s VP of Messaging and the leader of the company’s blockchain team stated that the payments using crypto right now are very expensive and super slow, which needs to be fixed. He added that after that’s done, Facebook might do something in the field.
The Verge also covered the story and added a statement by Facebook: “Like many other companies Facebook is exploring ways to leverage the power of blockchain technology. This new small team will be exploring many different applications. We don’t have anything further to share.
Cryptocurrencies are starting to get useful
Some time ago, the main issue with cryptocurrencies was the fact that it was very difficult to actually use them in real life. They are still not as widely accepted as regular currencies or other payment methods, but there are definite indicators of things getting better.
Just take a look at few examples of how cryptocurrencies can be used nowadays:
- You can buy gold for Bitcoin. When you want to switch from virtual to physical investments, it will be especially easy thanks to this.
- Microsoft now accepts Bitcoins as a form of payment in its store, so you can buy movies, music, apps and other things with your digital currencies.
- Bitcoin and other cryptocurrencies can be used to gamble in more and more online casinos, with some of them even accepting only cryptocurrencies as a form of payment.
- Increasing number of retailers start accepting Bitcoin and other cryptocurrencies as a form of payment for their products (or services). You can use aggregators such as Spendbitcoins.com to find them.
When Bitcoin was only starting, many people believed it could never be used to purchase something in the real world. Nowadays, we know that that’s not true and we can be only stoked to see what the future brings in this area.