Social media giant Facebook is said to be planning to create its own cryptocurrency. This will allow users across the globe to make digital payments, according to a fresh report from Cheddar. The company has also started its research on blockchain a year ago. Facebook's corporate development team started looking at how the social platform could use the new technology.
The company has announced that David Marcus, VP of Messenger app will lead the new team, to explore options on how the company can hold blockchain across the platform from scratch. Before Facebook Marcus had worked as president of PayPal. He will now lead a bunch of Facebook employees working on the blockchain.
Moreover, Facebook is not going to discontinue plans on cryptocurrency. The work on cryptocurrency just started and it might take years for the company to materialize things.
"Payments using crypto right now is just very expensive, super slow, so the various communities running the different blockchains and the different assets need to fix all the issues, and then when we get there someday, maybe we'll do something," Cheddar quoted Marcus as saying.
A Facebook spokesperson in a statement to Cheddar said, "Like many other companies Facebook is exploring ways to leverage the power of blockchain technology. This new small team will be exploring many different applications. We don't have anything further to share."
According to Cheddar's report, "Facebook will likely need to make acquisitions in the blockchain and cryptocurrency space to develop its own virtual currency, one of the people said. Blockchain technology could also be used to help Facebook verify the identity of accounts and encrypt data."
According to International Data Corporation, global spending on Blockchain solutions is expected to reach $2.1 billion (approx Rs 1,41,52.4 crore) in 2018, more than double of the $945 million (roughly Rs. 63,68.6 crore) spent in 2017.
Let's how and when Facebook will bring its cryptocurrency, how it will grab the trust of the users in terms of security. Facebook has already been on the radar because of the security breach and this will be a big step to earn the trust of people.