Facebook is all set to launch its cryptocurrency during this month. Employees behind the project may possibly be allowed to receive salaries in the new cryptocurrency, as per The Information. This is likely to be a game-changer for the company, which is mostly dependent on advertising revenue.
David Marcus, an ex-PayPal executive was charged with seeking out opportunities in blockchain, the technology behind cryptocurrencies, last year. Ever since then, news outlets have written about Facebook’s plan to build a cryptocurrency, which could be exchanged, traded and stored, just like actual money. Facebook apps like WhatsApp and Messenger would enable the currency’s transactions. ATM-like outlets were also being planned where currency purchases could be made by interested users.
Building a more reliable and easier currency, which helps users pay for goods and transfer money between currencies, could allow diversification beyond advertising. Given the company’s 2bn strong user base, spread out across various platforms, this can be a goldmine. Press, privacy advocates, and lawmakers have criticized Facebook’s information tracking systems used in its ad model.
The developers’ conference saw CEO Zuckerberg highlight payments as its next step. The conference was held during early 2019. However, CFA Wehner and COO Sandberg are still unsure of the project and its viability internally, the report said.
Facebook is considering getting third-party firms and organizations as nodes, which would manage the currency’s operations and provide additional aid, if necessary. To access this privilege, the firms would have to pay $10M.
Cryptocurrency nodes have the necessary computing power that can solve complex mathematical problems. This is used to authenticate and identify transaction legitimacy. Usually spreads among numerous partners and decentralized in nature, Facebook’s plan is to establish a Foundation that consists of its partner who will manage the cryptocurrency.
However, Facebook has officially declined to talk on the issue.