A widely-discussed cryptocurrency developed by Facebook can be a solid source of extra income for the largest social network. Despite the representatives don’t confirm any info related to so-called Facebook Coin, enthusiasts are here with promising news.
Ross Sandler from Barclays, one of the company’s Internet analysts and experts, has issued a note to the brand’s investors on March 11, 2019. According to CNBC which was the first portal to unveil information from this appeal, Sandler thinks that Facebook can earn from $3 billion to $19 billion in additional revenue thanks to the coin by 2021.
Facebook Coin is a new initiative which is currently under development, as rumors say. Sandler in his note mentions that cryptocurrencies are highly desirable revenue sources for Facebook, at this moment. Launching a brand new way of making money without direct correlation with advertisements should please the brand’s stakeholders.
Sandler focuses on two goals for the upcoming asset including introducing a new innovative payment option for the wide audience and regaining the client’s loyalty which was affected by security issues in 2018. As for functionality predictions, Sandler assumes that the coin will be designed for micropayments and P2P transfers inside the network.
Still, the Barclays analyst thinks that the final success will be defined by the role of Facebook Coin in reshaping current micropayment actions related to content distribution.
Ideas from 2010
Overall, things are similar to projects developed almost a decade ago when Facebook introduced Facebook Credits – an in-system currency which users were able to purchase using fiat money. In 2013, these coins were fully removed from the network and users got their domestic currencies instead.
Facebook Coin should become a new version of this initiative. The company may focus on the global reach because Sandler mentions David Marcus (ex PayPal CEO) as the leader of the development team. Comparing to Facebook Credits, decentralized currencies have more chances to engage users and boost profitability.
Facebook Crypto Activity
To reveal more on the topic, it’s clear that the company is interested in cryptocurrencies and blockchain solutions. As Cheddar reports, Facebook has recently hired several members of Chainspace, a crypto startup focused on global smart contracts. Researchers also say that the crypto department features 50+ employees who work on creating a new stablecoin to connect Messenger, Instagram, and WhatsApp.
You can also check the longread written by Mark Zuckerberg where he talks a lot about encryption and payments. No word about cryptocurrency, though…