The public is aware of the fact that all the giant companies that own the world’s most famous social networks have already explored the area of cryptocurrency, regardless of difficulties this market has been facing lately. Perhaps the most popular among the network, Facebook and Telegram, started creating their own digital money. How much can these big players affect the global acceptance of blockchain technology and the revolution in retail payment system?
Use the existing multi-million-customer base
The company has always had an affinity for the financial sector. In 2014, they recruited former President of PayPal, David Marcus.
Facebook is a social network that owns Whatsapp, Messenger, and Instagram. All these applications together create a consumer network of incredible 2.7 Billion people. You will find that such a social network is one of the most powerful means of gathering people in one place. By using its technology power, Facebook can create a payment method – digital money, where millions of users can transfer money from one end of the world to another, through the network, a revolutionary move.
Facebook introduces digital money into the mainstream
Digital money will be implemented as a way of money transfer by messaging services. This digital money (token) will be stablecoin, or the currency associated with the US dollar. Actually, it will be linked to more currencies, the Dollar, the Japanese Yen, the Euro. This way, it will be less attractive to speculation. Tokens will also have links with the Special Drawing Rights of the International Monetary Fund.
Digital money is not just a social networking project. Some time ago JP Morgan announced the launch of its coin. With Facebook’s activities, JP Morgan can only go even better. At the same time, with hundreds of thousands of users on the network at a time, Telegram announces its currency – the GRAM.
The pattern found in Asian Internet companies?
Leading Chinese Internet companies like Baidu, Alibaba, and Tencent. BAT are already in the financial business sphere. However, these companies have entered into these waters only after creating a serious user base. Recognizing the pattern – technology leaders are gaining a tremendous publicly offering unique technological solutions. This way, they are building a network of users which is more than enough to start the development of a financial service.
Another indicator of the purpose of creating digital money in the ownership of the Internet company is the 1.7 billion people living in parts of the world with underdeveloped traditional banking systems. Among them, there are a lot of people who use Facebook or Telegram messaging systems.
Statistic of these nearly two million people who do not have access to the bank accounts, two-thirds own a mobile phone, which means they can have access to digital money. The fact gives social networks like Facebook enormous potential and chance to develop something entirely new and revolutionary.