Facebook and Stellar (XLM) Discuss Crypto Payment Blockchain Network to Rival Wall Street and Big Banks
Facebook is Talking to Crypto Project Stellar About Its Blockchain Technology: Could a Facebook Coin Be Next?
Facebook is reportedly speaking with Stellar about using its blockchain technology. According to a report from Business Insider, Facebook has already met with Stellar to discuss how Stellar’s blockchain technology could integrate with Facebook’s existing products and services.
It’s unclear how Facebook would use Stellar’s technology. However, optimists suggest that this is yet another hint Facebook is exploring the launch of its own cryptocurrency – like a Facebook Coin – that would be transferred via the Stellar protocol between Facebook users.
Business Insider’s sources suggest Facebook could even fork the Stellar blockchain. Facebook could use the fork to process payments more efficiently than existing banks. Or, Facebook could launch its own Facebook-backed digital token.
It has already been reported that Facebook has established a blockchain team. It’s no secret that Facebook is interested in cryptocurrencies and exploring the launch of its own blockchain technology. However, the meeting with Stellar means Facebook is continuing to research blockchain and explore various uses for it within the company:
“In recent months, Facebook’s blockchain team, led by former PayPal executive David Marcus, has met with open source payments technology company Stellar about some of those opportunities, people familiar with the talks told Business Insider. While the talks were early stage, they could shed light onto Facebook’s ambitions to push into finance and take on big banks.”
That same source told Business Insider that Facebook is considering using blockchain technology to compete with traditional financial institutions. Blockchains capable of transferring money securely, at high speed, and with low cost, could transform the global financial industry.
Business Insider also claims to have an inside source at Stellar. That source shed further light on the meeting with Facebook:
“A Stellar insider told Business Insider it would make sense for Facebook to record payments transactions onto a distributed ledger like Stellar. Other merchants could then connect to a Stellar-based ledger.”
The long-term goal of such a platform would be to compete with the SWIFT payment network and similar financial services. It would create a globally-accessible financial platform, allowing for the seamless transfer of value between users – presumably Facebook users. SWIFT and similar services currently connect banks together, allowing bank customers to transfer money to accounts on other banks. A Stellar-based crypto payment platform could offer similar but superior functionality.
Could Facebook Fork the Main Stellar Network?
Interestingly, Business Insider is reporting that Facebook is considering forking the main Stellar network.
Business Insider cites insider sources claiming:
“Facebook and Stellar have spoken about the firm potentially forking the main Stellar network as part of its blockchain efforts.”
A fork would split the Stellar blockchain in two, similar to what happened with the bitcoin blockchain in August 2017, splitting bitcoin into BTC and BCH.
By forking the Stellar blockchain, Facebook could access a highly-functional, fast, and proven network without investing in its own blockchain platform. As an open source platform, Facebook has the freedom to fork Stellar and create its own coin.
Business Insider reported:
“Facebook is known for working with other open-source technologies,”
“being one of the largest maintainers of React, an open-source technology language. It could in theory fork an existing blockchain as opposed to building its own.”
In any case, Facebook is clearly interested in blockchain technology. The social media giant appears to be taking increasing steps towards launching a blockchain-based payments network – or even its own blockchain-based digital token like a Facebook Coin. Stay tuned to see where the Facebook and Stellar discussions go next.