Social media giant Facebook’s ambitious cryptocurrency project with some big names as partners has garnered significant attention. Facebook signed a dozen companies including big shots like Uber, PayPal, and Visa for the much-hyped stablecoin. The cryptocurrency community was not overwhelmed after the news broke, with several influencers and proponents calling out the tech giant and its upcoming rollout.
Siding with the Mark Zuckerberg-led Facebook cryptocurrency project were the RBC Capital analysts Mark Mahaney and Zachary Schwartzman. The two analysts in a note asserted that the project has “crypto opportunity” which would “unlock new engagement and revenue streams”.
Citing the note regarding Facebook’s foray into the world of virtual cryptocurrencies, Dan Nathan, a well-known panelist on the latest edition of CNBC’s Fast Money, said that the social media giant has two motives – Payments and Commerce.
In terms of commerce, Nathan explained that in Asia, Facebook already has about a billion monthly active users in the region which is 4x greater than the user base in North America, thus picturing a great potential for money inflow.
According to the Fast Money Trader, it is “not about the hardware but the operability of the apps” on the phone and added that China has successfully integrated payments and commerce in their native social networking called WeChat. Hence, despite China blocking Facebook along with many other global social media providers, the CNBC panelist speculated that the new stablecoin might create a scenario driving Facebook into the country “in a whole different way that doesn’t rely on social network”.
Another Fast Money Trader, Steve Grasso, claimed
“Isn’t it amazing how with all the headwind that Facebook has had, it’s up by 38% YTD. I think this is another testament to, maybe the people are taking their eye off the ball on the privacy concerns. Now they are throwing a little bit of Bitcoin icing on the game.”
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