Facebook To Add Up to $19 Billion in Revenue with new cryptocurrency
According to a client note provided by Barclay’s internet analyst Ross Sandler, Facebook’s launch of its own digital currency might yield billions in additional income for the firm. The social media behemoth has been supposedly developing its own stable-coin, although accurate information of the project remains limited.
Sandler estimates that the launch of “Facebook Coin” could increase profits by as much as $19 billion in by 2021 and “change the story for Facebook shares.”
Could Facebook’s Digital Currency be a Boon for the Social Network?
In the note issued today and initially reported by CNBC, Sandler gave both an upper and lower estimate of the chance provided by the launch of the brand-new digital currency. Whilst not quite the practically $20 billion upper estimate, the internet analyst’s conservative numeration
was still a remarkable $3 billion over the very same 2 year period.
Sources reported by the New York Times claim that the social media strategies to at first make its stable-coin readily available through its immediate messaging application, WhatsApp. Nevertheless, Facebook itself is yet to provide details on the project.
Sandler thinks that the launch of a digital currency will offer the business substantial opportunity for growth. The Cambridge Analytica scandal in 2015 affected Facebook’s share price negatively. Sandler commented that the addition of an alternate income stream offered by using payments is “sorely required at this phase of the business’s narrative.” The expert went on to keep in mind that the inclusion of a native payment technique would allow for more premium content appearing on the site. He then hypothesized on the nature of the eventual digital currency:
“Based on our checks, the first version of Facebook Coin may be a single purpose coin for micro-payments and domestic p2p money transfer (in-country), very similar to the original credits from 2010 and Venmo today.”
During the client note, Sandler likewise drew attention to the social media network’s previous efforts to introduce a digital currency. In 2010, the company released its first effort at a kind of electronic cash– “Facebook credits”. The success of this early plan was doubtful and it was ultimately shelved, nevertheless.
Sandler keeps in mind that the current effort into the payments space by Facebook is far grander than that previous attempt. He highlighted this with mention of the group of blockchain professionals being put together at Facebook– among them, David Marcus, the previous president of PayPal.
However, the Barclays analyst did admit to a couple of difficulties looming for the social network. He noted that “Facebook coin” would need to prove itself as more useful than existing techniques of payments. This, if well-executed, ought to assist the multi-billion-dollar business inspire higher investor self-confidence following the issues it dealt with in 2018.
Finally, Sandler speculated on the future. He stated that he could see the social network “eventually” getting into remittance payments and consumer lending.
Crypto Community Polarized on “Facebook Coin”
The potential launch of Facebook’s digital currency has split the opinion of the crypto space. Some believe that it represents a major milestone for general adoption and that billions of people could be about to be turned on to crypto:
Mark my words, if Facebookcoin (or Zuckbucks) is actually listed on crypto exchanges and is made accessible to 2.5 billion people, we’re in for a helluva ride.
— Jeremy Gardner (@Disruptepreneur) February 28, 2019
In the meantime, Andreas Antonopoulos, a legend of the crypto community, commented at length on many of the issues with such centrally-issued digital tokens in a video he posted to Twitter:
When Facebook launches a coin, many people will use these candy-colored financial surveillance systems.
The question is, what will you use?
— Andreas M. Antonopoulos (@aantonop) March 1, 2019
The most anticipated but secretive project is now underway at Facebook.
The company is working on a coin that users of WhatsApp, which Facebook owns, might send out to loved ones quickly, said 5 people informed on the effort who spoke on the condition of privacy because of confidentiality contracts.
The Facebook project is far enough along that the social networking giant has held conversations with cryptocurrency exchanges about selling the Facebook coin to customers, said four people briefed on the negotiations.
Featured Images from Shutterstock.
The post Facebook’s “Crypto” Currency Expected to Add Up to $19 Billion in Revenue appeared first on NewsBTC.