Several mainstream media and news platforms including Cheddar recently reported that social media giant, Facebook, will be considering (perhaps in the future) partnership with Stellar to develop a blockchain platform which will equally be a Facebook variable. However, Facebook has denied entering into any form of negotiation with the cryptocurrency firm.
While denying the rather inaccurate report of partnership, a public relations representative of Facebook firmly claims that it is:
“Not engaged in any discussions with Stellar, and we are not considering building on their technology.”
The above words of the spokesman were borne out of the responsibility to discredit the report which has it that both companies have negotiated on future partnerships which imply that Facebook intends to take advantage of the significant Stellar network as a fragment if its blockchain endeavors. Though the cryptocurrency firm reportedly informed Business Insider stating how:
“It would make sense for Facebook to record payments transactions onto a distributed ledger like Stellar.”
It is notable that Stellar was established in early 2014 but basically as a payment technology built on Ripple protocol. The firm has metamorphosed since then, conforming and developing based on the development and opportunities available on the fast-rising bitcoin technology.
Also, Stellar was approved and awarded sharia compliance certification in the money transfer and asset tokenization sector in July. This will translates to authority to enhance its ecosystem in regions where operation in the financial service sector requires compliance with Islamic economic principles.
Presently, the Stellar’s XLM token is one of the top ten cryptocurrencies on Coinmarketcap’s classifications and its trading at $0.208 after a nose-diving fall of about 3.6% in the last 24 hours period. Nevertheless, the virtual currency has a market cap of about $4billion.
Facebook’s Strides towards Blockchain Technology
Despite the rather misleading news of collaboration still in the air, Facebook has continued in its strides towards exploiting the “unfair advantage” of the blockchain technology. The Director of Engineering, Evan Cheng, has reportedly moved last week to the same title and position in the company’s Blockchain team.
The team, which was initially formed by David Marcus, the head of Facebook messenger application in May, aims to explore and exploit the transparent and incorruptible blockchain technology in developing applications.
Notably, Shashwat Gupta, who happens to be a former project manager at Samsung Pay, reportedly joined the Facebook blockchain team in May. He was also noted to have removed blockchain off his LinkedIn profile after the media started setting preying eyes into it.
The social media giant has also added jobs ads which indicates the intention to expand its cryptocurrency group and its hiring a blockchain public policy manager who will analyze issues and give concrete way forwards to the team on related development in the fast-rising technology.
The formation of the team as witness the development and creation of a new group which amounts to about three different divisions namely: “new platform and infra.” “Family of apps” group and, “central product services.”
Though Facebook banned Crypto related ads classifying it using a clause which prevents commercials for financial products and services frequently associated with misleading or deceptive promotional practices.” However, it was later reported that Facebook whitelisted Coinbase crypto ads will be shown on the platform and it plans to create its own in-app cryptocurrency.
The social media firm can be regarded as in no small way entering the banking sector, as it’s reportedly considering sending users their bank balance, or (at the very least) helping them against fraud alerts occurrences.
It is now apparent that Facebook’s denial of the partnership should not be taken as to mean that Facebook is having no interest in the blockchain technology, perhaps in future, the company might consider collaboration with a cryptocurrency firm, but that is not the case as at press time.