According to a Bloomberg report, Facebook might be launching its stablecoin as soon as next quarter. According to anonymous sources, Facebook is on the verge of launching its rumored crypto project in India and the social networking giant is doing it with the help from some of the best alumni from PayPal.
Facebook’s cryptocurrency has been in the works for a while now and so far, the social media giant has kept their project under the covers. However, there have been constant leaks and unofficial reveals in the news. According to the latest reports, Facebook has employed several PayPal alumni for their project. The reason behind this decision is the fact that Facebook is looking to utilize its millions of users in India to launch a project in microtransactions.
Facebook’s blockchain team was launched last May and counts about 50 employees so far, whereas 20 percent of the team comes from PayPal. According to previous reports, Facebook is developing a stablecoin, a type of cryptocurrency which is pegged to the US dollar or a group of other currencies. This helps make the token a lot more resistant against fluid prices of cryptocurrencies.
“There is still a lack of clarity on what Facebook is going to do, but it looks like the long-term vision is creating a sort of marketplace model within Facebook,” said Harshita Rawat, a payments analyst at Sanford C. Bernstein & Co as reported by Bloomberg.
The crypto community has come out as a supporter of Facebook plans. Billionaire investor and head of crypto merchant bank Mike Novogratz was quoted saying:
“I think it’s a stunningly important thing. I think it’s a good thing for the entire space… You’ve got one of the largest companies in the world saying ‘we believe in cryptocurrency.’”
WhatsApp, which is owned by Facebook, has over 200,000,000 million users in India. Facebook has been eyeing up the Indian market for quite a while now because of the fact that India has become experimenting grounds for the behemoths of Silicon Valley. However, India has been tightening the noose around cryptocurrencies over the last couple of years, which sets up a peculiar situation in the coming months as Facebook and the Indian authorities head for a collision.