Anthony Pompaliano or better known as Pomp across social media is one of the most popular voices around the crypto community. Generally, he is against centralized institutions, however, when he heard rumors on Facebook launching their own crypto, he was surprisingly in the support of it.
The founder & partner at Morgan Creek Digital points out that India has a large population, significant smartphone adoption, and a regulatory environment that leads people to be interested in cryptocurrencies.
Facebook realizes this could be a company defining opportunity and it has some of its most talented people working to make this effort successful. The most ideal scenario would be for Facebook to build the world’s dominant payment system.
“This would be a direct competitor to Visa and Mastercard, but it is more likely to happen than you may think. Facebook has billions of users and tens of millions of merchants. This gives the company a leg up on competitors as they bootstrap the network effects needed to lock in both sides of a marketplace,” Pompliano says.
Betting against David Marcus, Kevin Weil, Morgan Beller, Zuck, Chris Cox, and the FB growth team is insanity.
I’ll ride with that crew any day when it comes to building, launching, and scaling products.
Ask their competitors how it went last time 😂🤷🏽♂️
— Pomp 🌪 (@APompliano) December 6, 2018
In a new announcement on Bloomberg, it looks like Facebook is trying to get in on this decision by launching a stablecoin.
The stablecoin would make it possible for users of the WhatsApp program to transfer funds, though the plan is to start with the Indian market. Along with the world on the stablecoin, Facebook is working on protocols to:
“Custody assets, or regular currencies that would be held to protect the value of the stablecoin.”
If Facebook launches the stablecoin they are reportedly building, it will quickly become the most used product in crypto.
WhatsApp has over 200,000,000 users in India alone.
The Indian government has been fighting crypto too so things are about to get very, very interesting…
— Pomp 🌪 (@APompliano) December 21, 2018
A few months ago, sources close to Facebook noted that there was a change that the social media empire was already working on a crypto product within the Stellar network.
So far, there have been continued denials from Facebook about these types of efforts, so there’s no clear reason on what the blockchain development team is going. For now, Facebook is still bringing in blockchain developers to the team. The head of this team, David Marcus, had left his work at Coinbase to pursue further work with Facebook, saying that there is a new conflict of interest.
Anthony Pompaliano thinks that it is obvious that Facebook will dive into financial technology as this gives them a better business model than their current intrusive advertising model.
“If the technology company could successfully build the product and drive adoption, they will have a chance to transition from a social network to one of the largest financial services companies in the world. This move would allow them to take a small percentage on each transaction and reduce the dependency on their advertising-based model.”