Bloomberg released a report a hour ago reporting that Facebook will be developing a stablecoin for Whatsapp users. The main use case behind this is for money transfer within the Whatsapp app.
The company will initially focus on the remittances market in India. In addition to working on a stablecoin, Facebook is also exploring strategies to custody assets, or regular currencies that would be held to protect the value of the stablecoin.
Facebook is far from releasing the coin, because it’s still working on the strategy.
Facebook, which has 2.5 billion global users, more than $40 billion in annual revenue and greater experience navigating regulatory issues, may have a better chance of making a stablecoin that sticks. It would be the first large technology company to launch such a project. The company’s relationship with India has been fraught, mainly because some instances of fake news spread through WhatsApp have led to violence there.
Still, Facebook sees tremendous growth opportunity in the country. India has 480 million internet users, second only to China. That number is projected to grow to 737 million by 2022, according to Forrester Research Inc.
A while back, we broke down the 40 new hires that Facebook made for their blockchain division. Initially, most of the discussion revolved around Facebook creating a payment solution since most of the new hires came from payment backgrounds. It seems like the picture is much more clear now and that the team will be focused on working within the Whatsapp division.