With blockchain technology spreading and cryptocurrency’s popularity increasing, it was only a matter of time before Facebook decided to step into the game. A source close to Facebook revealed that the company is seriously considering developing their own system of virtual tokens for electronic payments on its platform.
The announcement isn’t too surprising, considering Facebook just publicized their internal blockchain team. The team is led by David Marcus and will analyze the situation and determine how Facebook could use blockchain technology to improve the user experience. The team failed to release any more in-depth information but indicated that they’d be pursuing multiple avenues and exploring all options.
Marcus has extensive experience in the world of cryptocurrency, as he was an early investor in Bitcoin and joined the board of one of the major cryptocurrency exchanges, Coinbase. Marcus believes that cryptocurrencies have plenty of room to improve their performance and that it’s possible Facebook could use the technology in the future.
In an interview with CNBC, Marcus cited that the primary drawbacks of cryptocurrency payments are that the system is slow and expensive. The communities using blockchain technology need to work out the bugs and stabilize the platform before Facebook can seriously consider using it on its platform.
Facebook has a tremendous amount of power and influence on the Internet, and with the sheer number of users and popularity, it’s possible that Facebook’s cryptocurrency could quickly top the market. A “Facebook Coin” could revolutionize both Facebook and the entire cryptocurrency market.
The company shouldn’t be too hasty in diving into the market. Federal regulators are cracking down on the market as it becomes more popular across the globe. Facebook Coin might have a fight if it wants to compete with Ethereum, Bitcoin, or other cryptocurrencies flourishing on the market currently. This idea may also be why they recently implemented a policy banning all advertisements related to cryptocurrency. Without competition, they truly have a dominant position in the market to quickly become the most widely used digital currency.