Mark Zuckerberg’s company banned cryptocurrency ads two months ago because of the preponderance of scams
Mark Zuckerberg’s company banned cryptocurrency ads two months ago because of the preponderance of scamsANDREW HARNIK/AP
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Facebook is considering launching its own cryptocurrency and allowing its 2bn-plus users to make seamless electronic payments.
The $530bn (£390bn) social media giant has quietly spent the past year exploring possible uses of blockchain technology, the decentralised ledger system that underpins bitcoin, ethereum, ripple and the thousands of other digital currencies that have been spawned recently.
Facebook boss Mark Zuckerberg has now assigned one of his most senior lieutenants to oversee the project — David Marcus, previously head of the firm’s Messenger app. Marcus’s brief is to lead a team of developers who can ascertain how “to best leverage blockchain across Facebook, starting from scratch”.
The company declined to elaborate on its plans, but it is understood that Zuckerberg is seriously considering launching a Facebook cryptocurrency. The move is ironic because two months ago, Facebook banned cryptocurrency ads due to the preponderance of scams.
Yet moving into payment systems is one of the big prizes being pursued by all Silicon Valley’s tech giants. They are keen to replicate the success of China’s largest tech companies, which have come to dominate online payments in just a few short years. Alibaba’s Alipay system has been overtaken by the payments system built into Tencent’s WeChat messenger.
Facebook’s appointment of Marcus for its own cryptocurrency effort is telling. Before Facebook, he was president at the online payment giant PayPal, was an early backer of bitcoin and recently joined the board of Coinbase, the cryptocurrency exchange.
Cryptocurrencies have attracted great interest because they promise to allow instant, cross-border, anonymous transactions.
News of a potential Facebook currency spurred a flurry of suggestions for its name, ranging from “ZuckBucks” to “FaceCoin”. Facebook said: “Like many other companies, we are exploring ways to leverage the power of blockchain technology. This new small team will be exploring many different applications. We don’t have anything further to share.”