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Facebook is developing its own cryptocurrency for WhatsApp

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Facebook is developing its own cryptocurrency for WhatsApp

A few months ago we found out that Facebook was studying the use of redania's most wanted for its platform, and although we did not know how it would integrate it then, it has now been revealed that it will create its own cryptocurrency for WhatsApp.

According to Bloomberg , the new cryptocurrency for WhatsApp will serve to transfer money directly to the messaging application and in fact will focus first on the remittance market in India.

The cryptocurrency for WhatsApp will be backed with US dollars

Despite the fact that the creation of the cryptocurrency for WhatsApp is in a premature phase of development, it has been stated that it would be a “Stablecoin” currency , that is, a cryptocurrency that links its value to a (conventional) fiat currency , which in this case would be the US dollar.

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With this, the cryptocurrency for WhatsApp could guarantee its stability and would be resistant to the volatility that has affected Bitcoin and the rest of the current cryptocurrencies.

In fact, the creation of a cryptocurrency for WhatsApp is not so surprising, especially after the company hired former PayPal president David Marcus to run its Messenger application since 2014, while in May, Marcus became the head of the company's Blockchain initiatives .

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"Like many other companies, Facebook is exploring different ways to harness the power of blockchain technology, " a Facebook spokesperson said in a statement. " This new team is exploring many different applications . We have nothing else to share. "

But what is known is that WhatsApp is extremely popular in India , since it has more than 200 million users, a country that also leads the sending of remittances in the world: no less than  69,000 million dollars to India in 2017 , according to this year's World Bank figures.

In this way , Facebook's strategy is clear : enter a market with great potential while solving high rates for international transfers by helping workers send money to their families.

A stable cryptocurrency designed to make money transfers

However, this is not an easy project to develop. During the past year there was a boom in cryptocurrency projects related to stablecoins.

At a given time, more than 120 companies were developing this type of cryptocurrency according to the Stable Report data, and it is that this concept is very attractive since it would be much easier to use in daily purchases.

Despite this, more than one of these projects has had to close due to the fact that they have not achieved stability and credibility on the part of the users.

Facebook has 2.5 billion users around the world, and more than $ 40 billion in annual revenue , plus more regulatory experience, giving it a greater chance of becoming a stable base.

If successful, the cryptocurrency for WhatsApp would be the first by a technology company , and what better than in the Indian market, which with 480 million internet users, represents a tremendous growth opportunity for the company of Mark Zuckerberg .

 

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