If you use one of the world’s most popular messaging apps – WhatsApp, Instagram, or Facebook Messenger – you may be in for a nice surprise. Soon, Facebook will be releasing its very own cryptocurrency, termed Facecoin, which will allow users to send and receive payments directly through the apps they use to keep in touch with friends and family.
A Facebook-owned coin opens the door to a world of possibilities. It could be used by and for private individuals, it could become the new method for in-app purchases, fees and bills, and a whole lot more. As for now, the information that we have about Facecoin is quite limited, however.
Information from Facebook, specifically, is limited to the fact the company is “looking into ways to leverage the power of blockchain technology”. What that means, in a nutshell, is that they have some ideas and they are in the process of turning those ideas into reality.
According to news giants, The New York Times and Bloomberg, the story might be a little clearer than Facebook is letting on. Investigative reports from both news outlets have reported that Facecoin will likely be a ‘stablecoin’, which means that the value will not fluctuate based on supply and demand. There will be a constant price and the number of available coins will always be in flux to maintain that steady price.
Although there will be many differences between Facecoin and other cryptocurrencies like Bitcoin, one of the main ones will be that Facecoin will not show up in the same investment circles seeing as how there will be speculation as to how its value will change.
Another difference will be that Facecoin will not be anonymous. It will be connected to a user’s account which means all payments and transactions will be tracked and recorded. It is possible to open a phantom Facebook account that is not connected to one’s real identity, so if Facecoin can be used without any added requirements for identification, it is possible that people will still use the coin in an anonymous fashion, but only time will tell what types of checks and balances Facebook is planning for its new crypto.
Going back to the fact that Facecoin will maintain a stable value, there is also the issue that it will have to be supported with hard currency. Facebook will have to create a treasury of sorts to ensure that the value is real. The more we learn about Facecoin, the more it begins to sound like a digital token that makes online payments easier. Similar to a digital wallet in many respects, but, again, we will have to see more details before drawing final conclusions.
Whatever approach the popular social media platform is planning, we can make an educated guess that it will do very well. There are a number of factors that point to its success, but the most crucial for any financial startup is a solid customer base, and at more than a billion strong, Facebook, WhatsApp, and Instagram have all the people they need to turn an idea like this into a reality. They will likely release the coin in a limited context at first before adding more functionality over time.