Facebook seeks investors for its cryptocurrency and displaces TDC systems

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We remember that some time ago, about of what Facebook was working on creating its own cryptocurrency blockchain-based for money transfer via WhatsApp.

This currency will be used to send money online through your WhatsApp instant messaging application. The firm points to India as the first consumer of this cryptocurrency due to 480 million users in the country connected to the internet.

For this reason, the firm intends to establish its own blockchain approach. Blockchain developer is the fastest growing job in the past four years, according to a report provided by the LinkedIn site.

The great powers and large companies are constantly investing in this technology, as is the case of the American giant Facebook.

In May of last year, Facebook appointed David Marcus, former head of PayPal and former boss of Facebook Messenger, head of Facebook's blockchain branch.

This new branch is made up of around forty people, including engineers, product managers, academics, and legal experts with experience in cryptocurrencies and payments.

In this branch of Facebook we can mention the following personalities:

  • Tomer Barel, vice president of risk and operations at Facebook of "blockchain on Facebook" and former head of fraud and risk management, former executive vice president of PayPal.
  • Meron Colbeci, Product Manager for Facebook's Blockchain, led product management for PayPal person-to-person payments.
  • Christina Smedley, Group Brand and Marketing Manager, was responsible for global communications and brand marketing at PayPal, among others.

Facebook seeks to displace credit card systems with its payment system

Some days ago Wall Street Journal (WSJ) announced that Facebook was seeking an investment of $ 1.000 billion that would allow you to implement your payment system based on cryptocurrencies.

With which the main objective is to create a system that can be used as a payment option similar to PayPal and Apple Pay, which can be accessed by anyone who makes purchases on the Internet and can compete directly with traditional credit cards.

For the moment, It is not yet clear how the product will work, but already Facebook is targeting financial institutions to strengthen the value of your currency to protect it from sudden fluctuations in bitcoin.

The WSJ report reveals that Facebook is currently in discussion with The main Visa and MasterCard payment networks about the possible support.

If Facebook's current efforts turn out to be conclusive, it would threaten to disrupt the traditional e-commerce pipeline and would likely be the most widespread application of cryptocurrency to date.

One of the great strategic advantages of Facebook is the fact that several websites already use its APIs to allow users to log in with their Facebook credentials.

Therefore, it would be sufficient to simply extend this existing infrastructure to allow these users to make purchases from third-party websites using their Facebook credentials.

It seems that interest in this coin Facebook has already started to be felt in the cryptocurrency environment.

The WSJ report also mentions that Facebook wants to financially reward users who engage with ads or other features on your platform.

In the eyes of some, the system you want to configure Facebook yet it has some shortcomings that need to be addressed.

Such is the case of the security to the user of the use of this together with their credentials, since the currency profiles to be used from "almost any smart device" with which malicious people can take advantage of the deficiencies of the system, application or other methods to get hold of user information.

Which is a point against, since banking institutions offer protection against theft or loss, something that is still in doubt about this new Facebook bet.

However, the interest it has already sparked in people who are closely interested in cryptocurrency suggests that beautiful things are ahead.

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