It looks like Facebook-owned messaging app WhatsApp is following in the footsteps of Kik, as the company is reportedly developing its own cryptocurrency.
Currently, Kik is the only messaging app with its own cryptocurrency, powered by the Kin Blockchain. It recently rolled out Kin cryptocurrency that allows users to send cryptocurrency tips to moderators and admins.
However that is about to change as Bloomberg reported that Facebook Inc is also working on developing a cryptocurrency that will let users transfer money on WhatsApp.
Quoting people familiar with the matter, the report says that the company is developing a stablecoin — a type of digital currency pegged to the US dollar — to minimise volatility.
But Facebook might not be able to release the currency anytime soon as it’s still working on a strategy on how to protect the value of the stablecoin.
The move was expected especially after Facebook hired former PayPal president David Marcus to run its Messenger app in 2014. Earlier this year, he was made the head of the company’s blockchain initiatives, which haven’t been discussed publicly in detail.
“Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology,” a company spokesperson said in a statement. “This new small team is exploring many different applications. We don’t have anything further to share.”