Facebook have announced that they are launching a stablecoin linked to the US Dollar on WhatsApp in India, as the West Coast tech giant makes a move on the traditionally East Coast financial services market.Based on an analysis of Google, who earn $6 per user on Google Play, Barclays think that $19 Billion of additional revenue is achievable from the 3 billion Facebook users. Facecoin may well be rolled out across other jurisdictions very quickly following the Indian launch.
Facebook generated 89% of its $40 Billion revenue in 2017 from digital advertising, so they may seek to utilise their coin to assist their corporate clients with overseas payments. In a lengthy post last week from Facebook’s CEO Marc Zuckerberg, he did not mention Cryptocurrencies, but did talk about payments and encryption on a number of occasions.
This announcement will not have been lost on the other FANGs (Apple, Netflix and Google) let alone Amazon, Alibaba and Tencent, so watch this space for more branded Digital Assets dressed up as payment methods for their loyal customers….
Barclays see as much as $19 billion in additional revenue in its “upside case” for Facebook by 2021 if its cryptocurrency plans work out.