Facebook Likely to Make Its Own Cryptocurrency, Media Report




It would likely be years before Facebook's work on blockchain and cryptocurrency became anything material, Cheddar reports.




The social media giant Facebook is exploring the benefits of releasing its own cryptocurrency, financial news outlet Cheddar reported on May 11.

According to Cheddar's anonymous sources, people "familiar with Facebook's plans," the social media giant is  "very serious" about plans to launch an in-app virtual coin.

It's not the first time the idea of a Facebook coin has been floated, but the plans take on some greater meaning in light of Facebook's recently reshuffled executive structure and newly formed blockchain group.

Senior reporter Alex Heath said:

"Sources say that Facebook is specifically interested in creating its own digital token, which would allow its more than two billion users to facilitate transactions without government-backed currency. Facebook is also looking at other ways that it could use this core blockchain technology that underpins these popular crypotcurrencies like bitcoin and ethereum."
 He added that the company is also evaluating how it can use blockchain technology to improve identity verification and secure its back-end infrastructure-perhaps even including how it manages customer data.

As CCN reported, Facebook announced last week that it had created a new team dedicated to researching blockchain technology. That team is led by Facebook executive David Marcus, who is also a sitting member of the Coinbase board of directors.

Marcus' appointment to Blockchain operations was immediately conspicuous, the executive previously having worked in the finance sphere for PayPal.

Marcus is an outspoken advocate for cryptocurrencies, and his experience at the digital payments firm makes him an ideal choice to oversee Facebook's potential foray into this space.

The venture would likely see Facebook make "strategic acquisitions" in the cryptocurrency industry as it seeks to build out its blockchain infrastructure...

Discussions are still preliminary, and if Facebook does decide to issue its own cryptocurrency it likely not going to be now.


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