Why and How we will see Facebook Enter Cryptocurrency
Facebook has had a rocky year – not least because of the breach of 87 million users’ data as exploited and compromised by “malicious actors”. It is understandable then that the social media giant wishes to enter the foray of blockchain technology, as expressed by Gaurang Trovekar the CEO of the blockchain-powered professional social network Indorse. Rumours have been afloat since the beginning of the year that Facebook is edging closer and closer towards blockchain technology and a number of factual occurrences point conclusively towards this.
In the beginning of May, the former head of Facebook Messenger, David Marcus, who is also a board member of Coinbase, announced that he would be leading an exploratory blockchain group reporting directly to Mike Schroepfer, Facebook’s CTO. Around the same time, rumours began emerging that Facebook was actually interested in acquiring Coinbase, as reported by the Economist earlier this year. This is understandable given that with its 2 billion users Facebook could establish a truly global cryptocurrency, larger than any traditional single currency, and it could act as both a reliable store of value and a worthwhile speculative investment.
Additionally, Mark Zuckerberg posted on 4thJanuary earlier this year that decentralisation versus centralisation was a key duality in his consideration and that he was interested in placing power back in people’s hand. This was interesting to note as Facebook banned advertisements promoting cryptocurrencies and Initial Coin Offerings around the same time. Time has demonstrated that Mr Zuckerberg might have reached a conclusion – the ban has recently been lifted signalling a change of tides.
Our suspicions of Facebook launching its own cryptocurrency are emboldened by the most recent news that Randi Zuckerberg, sister of Mark Zuckerberg, has joined the 7 existing members of the Huobi Chain Expert Advisory Committee, a think tank for the digital asset trading platform. She currently acts as the CEO of Zuckerberg Media, an NY-based content creation firm she created 5 years ago, and while she is not a current position holder at Facebook, she did act as a spokesperson and marketing director for the social media giant in earlier years.
The factual matrix surrounding Facebook and blockchain technology demonstrates that the company is investing increasing resources into developing relationships with blockchain companies. Time will tell how this investment is manifested to the company’s net advantage however we here at NouVive are confident that we will hear an official announcement from Facebook before the end of 2018. In terms of predictions, it is reasonable to assume that blockchain technology will also be incorporated into Facebook’s data security procedures to safeguard again data breaches as we witnessed earlier this year; an undeniable PR boost if nothing else. Facebook has the potential to overcome mainstream consumer payment solutions such as AliPay and WePay as the social media giant’s 2B users overshadow the combined 800M of the aforementioned.
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