Facebook crypto could raise $19 billion

12 March, 2019

There’s a massive upside for Facebook entering the crypto space, according to tech analysts on Wall Street. The Facebook cryptocurrency, which will reportedly be used to facilitate cross-border payments and will have stablecoin properties, is worth at least $19 billion in revenue within the next two years, CNBC reports.

Ross Sandler is an internet analyst for Barclays. He bases his math on the success of Google Play, which reportedly earns $6 per user. If Facebook has similar usage with its payments platform, its annual revenues will jump by $19 billion. The social media giant has just over 3 billion users.

Sandler believes the stock will gain renewed confidence as soon as Facebook begins finding ways to profit outside of advertising and other means that compromise user privacy. Entirely optional revenue models, like the ability to send low-fee payments across borders to friends and family, are likely to receive praise from Silicon Valley to Washington, DC.

Facebook and Google are both masters of targeted advertising, which has led to extreme criticism and regulatory investigations. While Google continually launches services that earn non-advertising revenue, Zuckerberg and company have been slow to adapt to a changing landscape. The Cambridge Analytica scandal remains fresh in the public’s memory.

One question that arises is where else Facebook payments might integrate. The company’s user base outsizes many payment platforms. If all one needs to use it is a Facebook account, it’s not hard to imagine businesses accepting it for goods and services.

However, getting into the money services business presents as many challenges as it does revenue opportunities. The industry is highly regulated on a global basis, and the security implications of monetizing every account are more than obvious.


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