Facebook Talking to Crypto Exchanges to List Its Cryptocurrency

On Friday, February 28, the New York Times published a report stating that the Cupertino-based tech giant Facebook is all set to launch its native crypto token - Facebook Coin - by the first half of 2019.

Citing “four people briefed on the negotiations,” the report also states that Facebook is currently in talks with global crypto exchanges to list its digital token. The entry of big giants like Facebook is an important development in the crypto sector. Moreover, it will also serve as a catalyst for other organizations to join.

The report notes that Facebook is planning to integrate cryptocurrency payments across all of its messaging applications which include WhatsApp, Messenger, and Instagram. For this, Facebook also plans to rehaul its messaging app infrastructure to facilitate seamless cross-app payments.

Furthermore, integrating the Facebook Coin across all three apps will give it huge liquidity considering a combined user-base of 2.7 billion. The Facebook Coin will be most likely a stablecoin with its value pegged to three different national fiat currencies.

Although Facebook is currently in talks with other crypto exchanges to list its “Facebook Coin”, there are still some questions regarding the centralization of the crypto token. Also, the Facebook Coin will have to undergo the same regulatory scrutiny as for the decentralized digital assets.

Facebook CEO Mark Zuckerberg recently spoke about the company planning to use the blockchain technology for logins as well as for other data sharing systems. Zuckerberg said that it would empower users in a better way to have control of sharing their data with other third-party apps.

Over the last year, Facebook has been employing more blockchain engineers with its currency blockchain team comprising over 50 members. Zuckerberg plans to replace Facebook Connect with something that is completely regulated. “Basically, you take your information, you store it on some decentralized system and you have the choice to log into places without going through an intermediary,” he said.

Also, note that Facebook is not the only company to launch the crypto-powered payments system through the messaging app utility. In January 2019, Telegram founder Pavel Durov said that it would be launching its Gram crypto token and the Telegram Open Network (TON) ahead this month in March.

Similarly, Japan’s LINE messaging app and South Korea’s Kakao messaging app, plan to launch their native crypto tokens ahead this month.