Facebook to enter remittance market?


Andrea Barnes
Andrea is Communications Manager at FXcompared. Prior to joining FXcompared, she worked as a communications consultant for companies seeking guidance with their social media, marketing and digital… Read more
  • The social networking site will likely launch its StableCoin-based service in India first
  • India has a remittance market worth $69 billion
  • Rumour has it that Facebook is developing a strategy to ensure that the value of its token is protected

Social networking site Facebook may launch its own cryptocurrency-based remittance service and it will start by getting a piece of India’s remittance market, according to reports.

With India being the biggest remittance recipient in the world based on data from the World Bank, the move is a good first step for Facebook, analysts note.  India enjoys a remittance market worth $69 billion and it is still growing.

Despite the presence of many details regarding Facebook’s plan, including naming the digital token that it will be using, the news has not yet spread among Facebook users.

The new app will be using StableCoin, according to a South China Morning Post article. Observers claim, however, that it has not yet been confirmed. Facebook, according to the Morning Post’s sources, will “deploy a stablecoin offering”, a token widely popular on WhatsApp. WhatsApp was bought by Facebook in 2014.

Observers add that if the news is true, Facebook will be making a lot of money from its new crypto deal and the remittance service that is rumoured to be launched in 2019.

The app will also likely enable Indian users to transfer money internationally, according to reports, but there is still no mention as to how much the overseas transfer rates will be. Sources note though that this new project aims to reduce the costs of remittances while getting rid of price volatility when it comes to foreign exchange.

Other details remain unknown though as Facebook has not yet made an announcement regarding the new service. The good news is that Facebook is reportedly working on its strategy to ensure that the value of the token is protected.

Bloomberg also reported about this piece of information recently while citing anonymous sources. According to Bloomberg, the social media giant will be focusing on the Indian market, the same information published by the South China Morning Post. However, Bloomberg reiterated that the actual launch of the service is still not known as the initiative is currently in the planning stages. It is noted though that Facebook put together a blockchain team in May 2018 with the sole aim to explore what the technology can do. The company also posted job openings last year for its blockchain team.

Facebook’s former Messenger App Division Vice President David Marcus is reportedly heading the blockchain team. In June, the company hired Evan Cheng for the team’s Engineering Director post. Crypto analyst Anthony Pompliano said: “If Facebook launches the stablecoin they are reportedly building, it will quickly become the most used product in crypto.” Interestingly, Facebook’s reported first market is not very keen on letting cryptocurrencies in. According to Pompliano, the Indian government “has been fighting crypto”.

Find out more about the newest developments in the remittance world by following our magazine.

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