Facebook is developing its own cryptocurrency for payments, according to at least two reports, a move that has the potential to make the social network billions of dollars while also helping to eliminate fake news and bots.
Although the social media giant has not publicly commented on reports from Bloomberg and The New York Times, it did acknowledge it's exploring the distributed ledger technology (DLT).
"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," Facebook said in a response to a Computerworld request for comment.
While details are few, the reports based on unnamed courses claim a cryptocurrency would allow users of Facebook's WhatsApp messaging platform to send money to contacts, similar to how Venmo or PayPal allow cross-border payments; the difference is that there would be no middleman (i.e., a central bank or clearing firm).
According to the Times' article, Facebook has already spoken with cryptocurrency exchanges about selling its crypto coin to consumers; others believe the social media firm would not tie payments to a strict "cryptocurrency," opting instead to use a stable coin backed by U.S. dollars and other fiat currencies.
