Back in May of 2018, Facebook started to explore how the implementation of blockchain and cryptocurrency could change not only their business model but the face of social media.

A lot of rumors and speculation have been stirring around about the prospects of the biggest social media company diving into the blockchain pool, and it has cryptocurrency traders and holders wondering what the implications will be on the value of the market.

What Facebook has said

Facebook has not been very forthcoming about their blockchain project. The project has even been categorized as mysterious by media outlets because Facebook has provided so few details.

Starting with the man at the top, Facebook has repeatedly acknowledged the disruptive powers crypto may possess.

CEO Mark Zuckerberg said in a Facebook post that he wanted the company to “go deeper and study the positive and negative aspects of” cryptocurrencies.

Facebook Messenger’s leader, David Marcus was reassigned to lead the social media giant’s new blockchain division. His said his mission is to determine “how to best leverage Blockchain across Facebook, starting from scratch.”

Most recently, they’ve acknowledged a team is at work to integrate blockchain technology into Facebook’s platform but didn’t say much more than that.

“Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology,” a Facebook spokesman said in an official statement. “This new small team is exploring many different applications. We don’t have anything further to share.”

What we know

Facebook is working on a “stable coin” that can be used to make monetary transfers on WhatsApp.

WhatsApp Messenger was the top Social and Communication app in most countries in 2018. WhatsApp was at the top of the user engagement rankings in India, Brazil, UK, Germany, and Canada.

Last year WhatsApp launched a P2P payments system in India.

WhatsApp is closing in on 2 billion total active users with over 200 million in India.

According to the World Bank, India is the world leader in remittances. It was reported that more than $69 billion was sent to India in 2017, and that number is expected to continue growing.

How stable coins work

A stable coin is backed by a stable asset such as gold or the US dollar. Tether, for example, is a US dollar stable coin that is constantly burning or creating new coins according to the market capitalization of the cryptocurrency.

In this case, the Facebook cryptocurrency will be tied to the value of one or more fiat currencies so people will be able to make small daily transactions without the worry of drastic price changes.

Facebook’s angle

Facebook is looking for a way to attract more business while making sure the models and processes are efficient. There is a clear opening for Facebook to seize a piece of the worldwide remittances market with WhatsApp’s popularity and positioning in countries that most participate in sending money back home.

The creation of a Facebook cryptocurrency indicates that thriving businesses are indeed interested in using blockchain technology to make money. But it doesn’t mean there will be an opportunity for investors to earn Lambos on the penny. They’ll also probably be utilizing their own blockchain and have denied rumors about working with Stellar Lumens.

The impact on the blockchain space

Facebook has not been the most reliable company when it comes to privacy and the storing and sharing of data. Die-hard proponents of decentralization see companies like Facebook as something completely opposite from what they are preaching.

However, when billions (and even trillions) of dollars are on the line, a company like Facebook coming to blockchain will attract other big fish. While the Facebook coin may not be a great investment opportunity, it could still bring a level of comfortability to new cryptocurrency users and shed light on the use of blockchain.