The social network giant Facebook might generate US$19 million by 2021 if its cryptocurrency plans works out. The company is currently developing Facebook Coin a cryptocurrency that will expand the company’s revenue states Ross Sandler, internet analyst at Barclays. Company’s cryptocurrency would be valued as traditional currencies and can be used through partner company WhatsApp. However, the company has not yet affirmed the inclusion of cryptocurrency.
Despite the price fluctuations seen in bitcoin’s on an everyday basis, Facebook Coin is less likely to go through these changes, as its price will be backed by currency like the U.S. dollar.
A Common Uproar Gives Pushed Facebook to Develop Stable coin
Last year’s incidence of data theft by Cambridge Analytica compromised details of 50 million Facebook users. This resulted in the formation of Facebook’s current business model that came from politicians, consumers, and advertisers. Despite this incidence, Facebook earnings continued and improved by 30% this year.
Facebook stretching its revenue sources into cryptocurrency looks promising, as it will not abuse users’ privacy. Facebook is comparing its revenue estimates with Google’s digital distribution service. Currently, Google Pay generates US$6 net revenue per user. Facebook sees a similar revenue-generating trend through its 3 billion user by 2021. Premium content is likely to find its way back to Facebook through its virtual currency and will be its strategic partners.
Facebook is building its blockchain team and is hiring employees from Chainspace startup. Moreover, if Facebook Coin turns successful, eventually the company can get into remittance, consumer lending, and physical payments.