Social media giant Facebook is exploring the benefits of releasing its own cryptocurrency, financial news outlet Cheddar reported on Friday.
Citing anonymous sources familiar with the matter, senior reporter Alex Heath said that the company — whose $533 billion market cap is a $140 billion larger than the current cryptocurrency market cap — is holding serious, high-level discussions about directing the focus of its blockchain research team toward releasing its own cryptocurrency.
Heath said:
“Sources say that Facebook is specifically interested in creating its own digital token, which would allow its more than two billion users to facilitate transactions without government-backed currency. Facebook is also looking at other ways that it could use this core blockchain technology that underpins these popular cryptocurrencies like bitcoin and ethereum.”
He added that the company is also evaluating how it can use blockchain technology to improve identity verification and secure its backend infrastructure — perhaps even including how it manages customer data.
As CCN reported, Facebook announced last week that it had created a new team dedicated to researching blockchain technology. That team is led by Facebook executive David Marcus, who is also a sitting member of the Coinbase board of directors.
<brFollow @davidlanz for real-time crypto news!SCOOP: Facebook is exploring the creation of its own cryptocurrency to facilitate digital payments for its two billion users.
Cheddar senior reporter @alexeheath has all the details.#CheddarScoops #CheddarLIVE pic.twitter.com/Zt8MC3MD6P
— Cheddar (@cheddar) May 11, 2018