Facebook may just be a digital currency and not a cryptocurrency

Facebook coin is in pre-release phases and it is believed to be an extension of the social media giant owned messaging application Whatsapp. The information has been leaked in the media prior to the launch while Facebook is still reaching out to the exchanges for its listing possibilities, however, no official information has been released so far.

Now further information and speculation are surfacing in the media while the social media platform has ignored the rumors media pundits and cryptocurrency gurus are taking shots at the currency which is backed by a user based of over two and a half billion (2.6b) users across the globe.

The latest in the series of speculations are based on the fact that the currency would be a stablecoin. Although the currency would be running on a decentralized blockchain the very nature of the currency is believed to be that of a central currency such as fiat currencies. The coin is now believed to be a counterpart of recently launched JP Morgan coin which is under heavy criticism to have been built on blockchain however remains to be a digital currency instead of a cryptocurrency.

Cryptocurrencies are decentralized in their nature of operation and blockchains were invested to serve this governance need. On the other hand, Facebook coin would be a centralized currency without a market cap on coins believed to have real-world asset backing. The asset backing the coin is still undisclosed but the information is enough to gauge that the currency would be a digital coin rather than a cryptocurrency.

It is perhaps the for the same, the crypto market stands unaffected by the rumors of Facebook coin launch and has shown little to no interest in the currency itself.