Mark Zuckerberg, co-founder and current Facebook leader, has been talking about the possibility of creating and using a Facebook digital currency on its own site.
For the last four months, Zuckerberg and company have been considering using the company’s very-own digital token to purchase and sell goods and services on its social media platform. Well, it now appears that his dream is finally going to come true.
Recent Facebook Announcement
Facebook recently announced that it would be handing over the company’s blockchain investigation and research responsibilities to David Marcus, the current head of Facebook Messenger.
As Mr. Marcus used to be the former president and CEO of Paypal and a current member of the board of directors of Coinbase, a major cryptocurrency exchange, it appears that Facebook is no longer kicking around the idea of using blockchain technology and cryptocurrencies on its platform but going through with it instead.
Not Such A Big Surprise
While many insiders have been left wondering why Facebook would want to enter the world of digital currencies and provide their own digital tokens to Facebook users, there are several obvious reasons why the company would want to do so.
For one thing, it would definitely make buying and selling through Facebook a whole lot easier for users, claims ambcrypto.com. What is more, it would entice investors from other countries with volatile currencies to park their cash through Facebook coins, and while Facebook cryptocurrencies would have lower transaction fees than most other digital currencies, especially in regards to investing, purchasing, and selling them on their site, there would most likely be a small fee related to these transactions which would definitely help to increase the company’s profit margins.
In the end, the simple fact is that Facebook does not want its users to leave its site and has always taken great efforts to keep them there, and so providing its own digital coins for its users is just another way to achieve this objective.
Other Uses For Blockchain Technology
Creating its own digital tokens is one major reason for exploring blockchain technology, but Facebook may also be thinking of various other reasons why this technology would help the company.
First off, Facebook has always tried to stay ahead of the curve when it comes to technological innovation and research. This is one of the reasons why it has had a history of purchasing companies it feels has a better technological grasp than itself in particular areas of interest.
While the company can not purchase blockchain technology, it can create better versions of it in order to stay ahead of the competition. If and when blockchain becomes an integral part of the Internet, you can be certain that Facebook will already be there.
The second reason is security. As Facebook has been having so many problems as of late with the Cambridge Analytica scandal, it wants to secure its reputation as a “safe spot” for users to upload their personal data to. One way to achieve this is to run the entire platform through blockchain technology.
As blockchain uses encryption to keep data secure, as well as decentralizes data to keep any one organization from getting a hold of it, it would definitely be a “plus point” for the future of the company and its reputation as a secure site.
Last but not least, the possibility of its own digital currency would open up its user base to more people as they could now buy and sell securely through the platform, as well as trade digital tokens. More users equate to more advertising dollars and let’s face it, Facebook like all other companies is here to make money.