Facebook has begun creating a cryptocurrency to work with WhatsApp and would be tied with the fiat, US Dollar.
It is becoming apparent that Facebook might be getting into the cryptocurrency markets. This is coming barely weeks after some major top cyrpto coins such as Bitcoin and Ethereum took a rapid downward plunge. Although it is expected as the digital coin market is indeed volatile, many speculate increments in the following months.
Back in 2014, Facebook bought the end-to-end encrypted app, Whatsapp for $22 billion. There have been pleasant improvements over the years and according to an earlier report, it may be monetizing the app pretty soon. In line with such goals, Facebook has decided to develop a digital currency that would allow users transfer money on the platform. This report was released by Bloomberg, although speculations are that this development may be focused in the India market.
A similar report, in May stated that Facebook had begun taking serious steps about creating the digital currecny to ensure secure payments on the platform. However, at that time, Facebook has reported that it was simply looking at building the right applications for blockchain.
Recent speculations, according to CNBC has stated that the company was indeed working on it. And although, there is still much to be done, it has revealed by these sources that the currency would be tied to the U.S Dollar, to build the value of the coin as well as protect it against fluctuations.