Facebook would be competing with Ripple (XRP) in the cross-border payment race.
The social media mega-giant is all set to research how it can create its own cryptocurrency which would give billions of Facebook users all over the world, the opportunities for achieving truly hassle-free cross-border settlements and transactions.
This move by Facebook poses a life-threatening competition to Ripple and many other cryptocurrencies working towards creating a seamless cross-border payment platform for users across the globe.
Recently, a Facebook official anonymously disclosed to Cheddar:
“They are very serious about it.”
Another Facebook official said that the social media giant might have to make a few “acquisitions in the blockchain and cryptocurrency space to develop its own virtual currency.”
Facebook hadn’t been into the Blockchain industry before early this year when its Chief Executive Officer, Mark Zuckerberg, had announced that the company recognizes cryptocurrencies as something which would take “power from centralized systems and put it back into people’s hands.”
Mark, however, intends to look into the possible risks of cryptocurrencies which make it hard to control. He said:
“I’m interested to go deeper and study the positive and negative aspects of these technologies, and how best to use them in our services.”
Facebook’s blockchain research team is headed by David Marcus, who is currently the head of Messenger and a Coinbase board member. He has worked for the social media giant for four years before which he used to work as PayPal’s President.
Now that he is the charge of everything that pertains to the Blockchain industry in the firm, he would be setting up a group of employees who would be exploring all of the possible ways the Blockchain technology can be used across the company.
In a Facebook post, Marcus said:
“After nearly four unbelievably rewarding years leading Messenger, I have decided it was time for me to take on a new challenge. I’m setting up a small group to explore how to best leverage Blockchain across Facebook, starting from scratch.”