Facebook is experimenting with blockchain tech, may launch its own cryptocurrency
Even though Facebook recently banned all the cryptocurrency ads on its social media platform, the company is now exploring blockchain integration models and possibly even the creation of its own cryptocurrency that could be used to purchase goods or send money to friends and family directly on the platform itself.
The rise of blockchains and cryptography as some of the most innovative technologies in the past years has piqued Facebook interest ever since last year, when the company put together a team specifically tasked with analyzing everything related to the crypto world. This team now comprises almost a dozen employees and is led by David Marcus, who introduced PayPal payments to the Facebook Messenger app earlier this year. Marcus is also involved in crypto-related endeavors outside of Facebook, as he is a member of the board of directors for the popular exchange Coinbase.
According to inside sources cited by Cheddar, Facebook may be launching a proprietary virtual token, but this will most likely take years of preparation. Speaking about Facebook's immediate plans in regards to a blockchain integration, Marcus stated that “payments using crypto right now are just very expensive, super slow, so the various communities running the different blockchains and the different assets need to fix all the issues, and then when we get there someday, maybe we'll do something.”
Moreover, Facebook does not seem to favor an initial coin offering (ICO) model like most of the crowdfunded businesses nowadays, whereas the blockchain tech could also be used to improve account identification and message encryption, practically adding a new security layer to the platform.