Facebook is reportedly developing a cryptocurrency for WhatsApp. Its main goal is to transfer remittances. The cryptocurrency will be initially experimented in India. The reason for this is that many Indians are working in foreign lands and they need to transfer their money back to India.
The cryptocurrency that is being developed by Facebook will be unlike Bitcoin. It will be a stable coin, fixed with the dollar market. This will also help in removing the perception that the cryptocurrencies are not safe.
It is pertinent to mention here that India has received almost $69 billion in remittances and WhatsApp users in India are more than 200 million. Thus for Facebook to test its cryptocurrency in a big market like India, thought and time is required.
A company spokesperson said,“Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications. We don’t have anything further to share.”
Other than Facebook, other companies that are working on the cryptocurrency technology are Amazon, Walmart, IBM, and JP-Morgan.
Stable coins are not as dangerous as Bitcoin but they do have complications. Many stable coins operations shut down included Basis. Its operations closed only 8 months after its release. Similarly, tether is also another stable coin facing backlash for not auditing.