The first report of Facebook planning to launch its own digital currency emerged in December 2018. However, the giant did not provide any comments on the announcement at that time. In March this year, it was revealed that Facebook was holding talks with exchanges to sell its crypto token.
According to the internal sources, the new Facebook coin will be fiat pegged stablecoin. It is notable that its value shall be tied to not just one, but three different national currencies. It is also known that the company will probably integrate cryptocurrency payments across its messaging services.
This includes three of Facebook’s wholly owned apps – Messenger, WhatsApp, and Instagram. Thus over 2.7 billion users can benefit from using Facebook’s new cryptocurrency.
As soon as the news about Facebook’s plans had appeared, crypto experts and outstanding players started making predictions on what to expect from the upcoming launch. For example, Barclays internet analyst Ross Sandler believes that launching its own cryptocurrency is a part of a multibillion-dollar revenue opportunity.
Moreover, Sandler forecasted as much as $19 billion in additional revenue by 2021 from Facebook’s coin. As he further added, the giant will bear the brunt of interchange costs between fiat currencies and its possible new cryptocurrency, which could cut into the profitability of the business.
Ted Livingston, known for being a leader in making predictions, has also made some guesses based on Facebook’s previous activities and experience in messaging and crypto. In a blog post, Livingston described how Facebook’s coin may replace the US dollar as the global reserve currency. He wrote: “We now know that Facebook is going to launch their own cryptocurrency too. But instead of creating a currency for the digital world, it looks like Facebook is going after something much bigger. It looks like they are going to create a currency for the physical world. And they have a proven playbook to get people to use it.” Livingston’s explanation begins with WeChat, a Chinese messaging social media and mobile payment app, which made the way to success pretty quickly and replaced cash in China. - 10 hours ago