Despite demonstrating impressive growth for Q1, Facebook is facing significant legal expenses. Although the added security costs will impact the company’s operating margin, Facebook will likely try to offset these losses with its planned ‘Facebook Coin.’

Facebook has certainly been in the thick of controversy over the past few years. The company has been plagued by criticisms over its security and revenue model which involves selling user data to advertisers. Naturally, this backlash is starting to affect its bottom line.

Although posting significant revenue growth in Q1, it seems like the party may soon be over. The legal costs and security expenses are expected to rise significantly in the coming years to beef up the platform. The end result is a tenuous future for Facebook, which could very well lead to slumping revenues.

However, the company is banking on one novel idea to save its dismal decline in revenue — Facebook Coin.

Facebook Coin to Offset Losses

Believe it or not, Facebook Coin will likely be incredibly profitable for the social media giant.

According to a March 11 report from CNBC, Barclays analyst Ross Sandler predicts that Facebook Coin will produce as much as $19B in additional revenue by 2021.

Facebook Coin would thus provide the platform with a revenue stream outside of just advertising, which has also come under fire in the past few years. Facebook’s own cryptocurrency will not only be an alternative revenue stream but also is also act as an effort to renew trust from its users.

The idea is not exactly a new one. Facebook has already tried to integrate ‘Facebook Credits,’ a native payment option onto its platform several years ago, and the idea failed spectacularly. Not only was there no appealing use case for the idea, but no real ecosystem was cultivated to make Facebook Credits viable.

Same Difference

Facebook Coin may very well be different. Being a stablecoin pegged to varies different currencies, it won’t fluctuate like Bitcoin (BTC). However, Facebook aims to make the cryptocurrency the de facto payment option on the platform.

Each transaction made with Facebook Coin would likely cost a minor fee which could serve as a new source of revenue altogether. As you can imagine, with such a massive user base, Facebook Coin just may end up being the social media company’s largest revenue boost in years.

So, although the current situation regarding legal and security costs for Facebook is grim, Facebook Coin just may provide the company with a way out.

Facebook Coin is expected to launch sometime in Q2 2019.

Do you think Facebook Coin just may save Facebook from the mounting legal and security expenses the company is currently incurring? Let us know your thoughts in the comments below.