Facebook has plans to create its own cryptocurrency, according to a breaking report by Cheddar. While not much is known about this proposed digital currency at this time, the report cites insiders close to the project who share that the company is “very serious about it.”
There’s been a lot of speculation on how Facebook could use the blockchain. Sources tell me the company is serious about creating its own cryptocurrency. Scoop here: https://t.co/IoSpUn3P4z
— Alex Heath (@alexeheath) May 11, 2018
In response to the breaking report, a Facebook spokesperson released an official statement to The Verge.
“Like many other companies Facebook is exploring ways to leverage the power of blockchain technology. This new small team will be exploring many different applications. We don’t have anything further to share.”
The news drops just days after Facebook announced that it has created an experimental internal blockchain group led by David Marcus, the executive formerly in charge of Facebook’s Messenger group and current Coinbase board director.
Facebook has experimented with digital currency in the past. Back in 2009, the company introduced Facebook Credits to function across various games on its platform, including Farmville. However, the Credits never gained traction and were subsequently pulled from the platform in 2011.
Facebook recently made the decision to block all cryptocurrency related ads on its platform. According to Facebook’s new policy, these ads are “frequently associated with misleading or deceptive promotional practices.” There is no clear indication how the addition of the company’s own cryptocurrency would affect its policies on external parties or stance on the highly volatile industry as a whole.