Everything you need to Know About Facebook’s Secret Cryptocurrency Project

Rumours about Facebook’s latest venture have been circulating the internet since the beginning of 2019. While the tech giant has failed to divulge any information about this, anonymous reports cite that Facebook has been working on a new crypto coin for quite some time now. Continue reading this article to find out everything there is to know about Facebook’s secret cryptocurrency project.

Facebook's Secret Cryptocurrency Project

Facebook’s History with Monetisation

Before we go into the details about the company’s newest project, we should also mention that this cryptocurrency project is just the latest of many attempts to monetise its platform. From ads to business offerings, direct partnerships and many other projects, Facebook has constantly tried to earn money from its platform.

Facebook is also the biggest and most popular online social platform for games. This is often called social gambling. Essentially, it is free, but players from certain countries can also play for real money. Every Facebook user has encountered these games at some point of his experience, as social casinos on Facebook pull in millions of players every single day. The market is constantly evolving and is already a multi-billion industry, just on Facebook.

Of course, those looking for a real online casino to play at should know that real no deposit casinos exist and some of them offer really favourable deals for those who like to play online casino games and win a little money while doing so.

How Will This Cryptocurrency Work?

A critical question that arises when talking about this project is – will Facebook’s crypto coin be decentralised? More precisely, would or could Facebook control this cryptocurrency as it suits the company? With all of the information we currently have at our disposal, it looks like a centralised system controlled by Facebook would perform much more efficiently that one that would run through a decentralised computer.

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Back in December of last year, Bloomberg reported that Facebook was developing this cryptocurrency for its subsidiary company WhatsApp. Looking to take advantage of the power of blockchain technology, Facebook is primarily focused on creating such a cryptocurrency that will allow users to transfer money on the WhatsApp app. With this in mind, many think that this potentially centralised cryptocurrency will operate in a similar way to PayPal’s centralised system.

How Will Facebook’s Cryptocurrency be Regulated?

There are many predictions of how Facebook’s cryptocurrency could change the current landscape of both the crypto market and social media platforms, but probably none bigger than the one addressing the issue of regulation. Regulatory compliance is the most important factor in the development of digital assets.

If this project comes to fruition, the company will undoubtedly face regulatory uncertainties which can significantly affect it, but also reveal much bigger issues regarding outdated regulations. The U.S. Securities and Exchange Commission has a clear set of clarificatory guidelines on digital assets, but it is still unclear if Facebook’s crypto coin will be subject to this.

Can Facebook Integrate This Cryptocurrency?

There are reports which suggest that Facebook is building a stablecoin, a type of cryptocurrency designed to minimise volatility. This type of currency would be backed and fixed to a specific fiat currency or commodity, unlike other cryptocurrencies which are unbacked.

Facebook isn’t the first one to come up with this idea, as there have been many other stablecoin projects.  Unfortunately, this type of cryptocurrency is very prone to failure, mainly due to the level of upkeep required. If this report is true and if Facebook is indeed building a stablecoin cryptocurrency, it will be very interesting to see how the company will handle all of the attributes this type of cryptocurrency comes with.

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