Facebook’s Crypto Coin: What’s The Big Secret?

By Prashant Jha

Reports that social media giant Facebook is developing its very own cryptocurrency to be integrated into its messaging service WhatsApp surfaced back in December 2018. Now, a New York Times article argues that Facebook is trying to make good on the promises Bitcoin failed to keep and is going to great lengths to preserve the secretive nature of this covert project.

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The article from this popular and reputed mainstream media house cites statements from several sources well-acquainted with the situation.

These sources all refused to be named in the article. Using their accounts, New York Times has presented an probable picture of how Facebook’s crypto project is going.

If the picture provided by the NYT is accurate, we could be certain that Facebook’s new alleged cryptocurrency would have access to a user base of a whopping 2.7 billion.

As per all reports and rumours doing the rounds since last December, it seems Facebook is definitely planning to launch this coin as a part of its messaging service WhatsApp, which it plans to integrate with other related apps such as Instagram and Messenger.

Reports also suggest that Facebook is going to great lengths to keep the project under wraps. Sources have reportedly said that those working on the crypto project in the crypto office are using a separate key card to enter an isolated room other employees are not given access to, to protect the details of the development process. Clearly, a shroud of secrecy surrounds the entire project at the moment.

Meanwhile, reports have also surfaced claiming that Facebook has already begun to pitch some of the major cryptocurrency exchanges for its new coin.

However, even though the social media major is clearly amping up its efforts to make a foray into this space, crucial questions still remain as to how successful it will be in driving adoption in an already overcrowded space.

Not to mention, Facebook is not exactly known for its pro-decentralization policies. Therefore, its tryst with cryptocurrencies, which are essentially required to be decentralized, has been called to question.

In addition, the company has great many hurdles to overcome with regard to regulators as well. However, if floating rumours about the coin being a stablecoin, are true, then the concern about decentralization may be slightly better taken care of.

Facebook has taken an interest in blockchain startups too, making hiring and acquisition decisions that clearly reflect its interest in the area. Now, it seems that its interest in crypto is also matching up to its enthusiasm for blockchain.