It's not yet clear how Facebook and its head of blockchain David Marcus will leverage the new technology, but one expert believes that the social network may offer an ad-free version, paid for in Facebook's own cryptocurrency.
Facebook confirmed the staff moves, which were first reported by the tech news website Recode. Companies often shuffle executives to work on different products to bring a fresher perspective and to help the teams more easily identify problem areas. Before joining the company, he was the president of PayPal, which facilitates transactions between users in Facebook's Messenger app. Facebook's decision to pursue blockchain technology will most certainly add some validity to the crypto industry, which has been very chaotic.
The self-confessed "cryptogeek" and cryptocurrency investor was also the former lead at online payment service PayPal prior to Facebook, and is now on the board of directors at the cryptocurrency exchange "Coinbase".
"Blockchain is a ledger, it's immutable and it guarantees transparency so they could use it to reinstate trust between the user and the advertisers and Facebook itself".
Citing anonymous sources familiar with the matter, senior reporter Alex Heath said that the company - whose $533 billion market cap is a $140 billion larger than the current cryptocurrency market cap - is holding serious, high-level discussions about directing the focus of its blockchain research team toward releasing its own cryptocurrency. The company is also said to be investigating other ways to leverage the tokenized digital currency and its underlying blockchain technology across its platform, too. Facebook in the past offered Facebook Credits, a way to pay for games and other items electronically. "We don't have anything further to share".
"Payments using crypto right now is just very expensive, super slow, so the various communities running the different blockchains and the different assets need to fix all the issues, and then when we get there someday, maybe we'll do something."