Will Facebook Own Crypto-Market?
The Facebook rumor wheel has been buzzing with stories of their idea to crypto-exchanges to host their token. There still isn’t much information out about how their cryptocurrency will work. Everything being said now is pure speculation so let me add to it.
Here’s Potential Use Cases I See Them Developing:
1. Internal Payment System
A payment system to handle all financial transactions on its platform. Micro-transactions would settle on their internal payment system and then settle bulk cash settlements for from fiat transactions with credit payment processors such as Mastercard, VISA, and Paypal. Their token could represent their internal payment system or launch their blockchain without a customer-facing token. If they do launch a customer-facing token it would be more of a “cash” button similar to how it looks in Facebook Messenger. They could use Blockchain to reduce their dependency on Paypal, Visa, and Mastercard to process financial transactions. I do not have any data on how much Facebook pays payment processors but I would assume something of this nature could save them billions in a payment transaction fees.
2. Retail Payments
To increase the profitability of their marketplace they could use their token to entice large retailers to actively sell products on their platform. Facebook could offer large retailers such as Amazon bulk tokens on a discount as a way to pass on transactional cost savings.
3. User Data Sovereignty (Permission-Based Advertising)
They could allow users to monetize their activities by having advertisers pay users directly for engaging in advertisements. I do not foresee Facebook up-ending their core business model however this is another use case they may be exploring as people are becoming more privy to the value of their data.
What do you think Facebook crypto-currency or blockchain will be used for?
