After its initial ban of cryptocurrencies and ICO ads this past January, Facebook now gathers a team of blockchain professionals to possibly create their own virtual currency.
According to Facebook representatives, the removal of crypto advertising was issued to protect it users from scams. However, CEO Mark Zuckerberg praised the potential of blockchain technology as a decentralized mechanism to “…put it [power] back into people’s hands.”
Regulating the ads people view on the platform seems to remove the responsible, and therefore the power, for people to make their own decisions. This is just one of the contradicting actions by Facebook who may claim autonomy for the shake of popularity but doesn’t practice what it preaches like their habit of collecting your personal data and controlling news-feed algorithms.
After removing the competition, Facebook has gathered a team to “go deeper and study the positive and negative aspects of these technologies, and how best to use them in our services,” Zuckerberg states.
The team includes Coinbase board member and Facebook Messenger App lead, David Marcus, who says he will be “…starting from scratch” to see how blockchain technology can be applied to Facebook.
Largest Altcoin on the Market
If Facebook implements a cryptocurrency into its platform it would generate the largest circulation of any other altcoin as well as bitcoin with over 2 billion users already hooked into the network. However, it is unclear how Facebook would use tokens or coins as Marcus has mentioned that utilizing the cryptocurrency as a payment system would be too costly.
Social Media Sites using Crypto
Other social media platforms like Steemit, Synereo, and EarthNation have already developed encrypted and decentralized currencies inside their networks with much success. These sites offer cryptocurrency rewards for sharing quality posts and blogs, voting participation, and curating content, which puts the control of the site into the hands of its users.
It will be interesting to see how Facebook uses cryptocurrency as their stance continues to be biased and based on regulation rather than decentralization; a tactic sounding very familiar to the bans casted by several governments who, after banning bitcoin, created their own state-issued coin.