Facebook is in favour of crypto payment service

Tuesday 15 January 2019 11:42 CET | News

Insiders from Facebook have been leaking plans that entail an initial trial of a cross-border payment service for repatriation of funds overseas back to India.

As such, the social media company has established an internal ‘Tiger Team’ to leverage the power of the blockchain and its active global base of 2.3 billion account holders. The service will use Facebook’s WhatsApp, blockchain infrastructure, and possibly a ‘Stablecoin’ in the making. However, Stablecoins are a type of cryptocurrency where the value is tied to a fiat currency, like the US dollar, but the ‘Stablecoin’ approach is considered to ensure that volatility does not influence the store of value proposition of the token.

According the World Bank, India received nearly USD 69 billion dollars in foreign remittances in 2017, meaning 2.8% of the country’s GDP. WhatsApp has more than 200 million users in the country, with the number of users in rural India doubled in 2018, and Internet costs in the region declined.

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Keywords: Facebook, payments , cryptocurrency, fiat currency, stablecoins, blockchain, India, cross border, remittances
Countries: World