Social media giant and parent company of WhatsApp – Facebook Inc. is reportedly working on developing a cryptocurrency called stablecoin for WhatsApp Payment users, keeping Indian market’s remittances in centre.
The cryptocurrency is called stablecoin, which is digital currency like Bitcoin that will be pegged to the U.S. dollar and can be used on WhatsApp for making payments. The development of stablecoin is under progress in the Facebook offices and the core purpose of introducing a dedicated cryptocurrency will be to minimize volatility and instability that is common in standard cryptocurrencies like Bitcoins. With introduction of stablecoin on WhatsApp, Facebook will be able to let its users make much easier to use in day-to-day WhatsApp transactions.
Taking the progress in account, the WhatsApp cryptocurrency still has a long way to be launched as Facebook is still working on plans and strategies for custody assets, or regular currencies that would be held to protect the value of the stablecoin. The entire crypto-plan is likely to be headed by PayPal president David Marcus, and the company is developing their blockchain department, and has already hired as many as 40 people in its blockchain group. Perhaps, like many other companies, Facebook too is exploring ways to leverage the power of blockchain technology.
Notably, with more than 200 million users, India is one of the largest markets for WhatsApp, and India also generates the largest revenue from remittances as people sent $69 billion home to India in 2017, as per World Bank reports. This means, when the stablecoin is ready, India could be the first country to see crypto-based WhatsApp transfers. Also, adding the cryto-payment option is as easy as adding the extension to existing UPI-based payment capabilities.