Facebook’s been quite secretive about planning to utilize the digital currency exchange process, and their Blockchain division, yet leaks are bound to happen. The reports portray these plans for a Facebook Cryptocurrency as one of the most significant shifts for company, and could alter the course of eCommerce on a huge scale.
A couple of months ago, The New York Times reported that Facebook would soon be seeking to launch its own Facebook Cryptocurrency offering, which would enable users of Facebook’s apps to easily exchange money between them, without additional fees or costs.
The Indian market would be a top pick for this new venture, as India sees the highest amount of transactions between family members. As India is the second Nation worldwide in terms of population, this might be a gold mine for Facebook.
New reports add an interesting twist to the story, claiming the company is now working on an even bigger target, to establish its own, cryptocurrency-based payment network which should be able to compete directly with conventional credit cards. Facebook wouldn’t only be looking to facilitate basic fund transfers, but it would essentially be positioning its payment network as a direct rival to Visa and MasterCard. That would enable Facebook to reduce the fees and charges associated with traditional funds transfers, while also facilitating direct, international payments on its network, utilizing only your existing Facebook credentials for the same.
According to the WSJ report, the offering would look to be “stablecoin” offering, which is a cryptocurrency that has its value linked to conventional currency markets. This is probably why Facebook needs the backing of financial firms, to insure that fluctuations in bitcoin markets won’t have an effect on theirs.
That may not sound revolutionary from a cryptocurrency market point of view, but facilitating online payments is a complex process, particularly across borders.
If Facebook is able to do so, that will be a huge win. It would also present some interesting eCommerce prospects, as Facebook users would love a one-click shopping process available for all products and services listed within Facebook’s various apps, and on partner sites.