Facebook has plans to launch its own cryptocurrency

After Facebook confirmed it is creating a new Blockchain group, fresh media reports have claimed that the social networking giant is also exploring the creation of its own cryptocurrency. Facebook, however, has not made any official statements about launching its own cryptocurrency.

In a statement, Facebook said: “Like many other companies, Facebook is exploring ways to leverage the power of Blockchain technology. This new small team will be exploring many different applications. We don’t have anything further to share”.

Sources tell Facebook is specifically interested in creating its own digital token. This would allow its more than 2 billion users to facilitate transactions without government-backed currency. Facebook is also looking at other ways. It could use this technology that underpins these popular cryptocurrencies like Bitcoin and Ethereum. Currently, there isn’t too much detail. The company will specifically focused on using cryptocurrency specifically for facilitating payments on the platform, something that could be a pretty dramatic shift given Facebook’s huge user base and existing marketplace section of the site for buying and selling goods.

“I’m setting up a small group to explore how to best leverage Blockchain across Facebook, starting from scratch,” David Marcus, currently the executive in-charge of Facebook Messenger, said in a post.

What is Blockchain technology?

Blockchain, the decentralized record-keeping system, could help tackle some of Facebook’s most bothersome problems, like identity verification or advertising sales. It’s also the technology behind most cryptocurrencies, logging ownership and transfers of the digital tokens.

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