Facebook is allegedly creating its own cryptocurrency. Some experts believe that it is an extremely lucrative undertaking.

Ross Sandler, an internet analyst at Barclays, suggests that the new coin is nothing short of a cash cow. In a note to the bank’s clients, he suggested that in the long-term it will generate as much as $19 billion, reports CNBC.

Sandler predicts that successful implementation of the fiat-pegged coin will help FB to whiten its reputation. Particularly, after the infamous Cambridge Analytica scandal which exposed how FB sells off private data to third-companies. Sandler emphasized:

“Any attempt to build out revenue streams outside of advertising, especially those that don’t abuse user privacy are likely to be well-received by Facebook’s shareholders.”

Both opportunities and challenges ahead

Barclay took Google Play’s model as a basis for its estimates. The Android app generates  $6 billion in “net” revenue per user now. Facebook, the userbase of which is estimated to reach 3 billion in 2021, might repeat this pattern.

“Based on our checks, the first version of Facebook Coin may be a single purpose coin for micro-payments and domestic p2p money transfer (in-country), very similar to the original credits from 2010 and Venmo today,” Sandler said.

Sandler mentioned that FB has been actively employing people working in the blockchain realm. Thes include David Marcus, former head of the Messenger app, and a group of employees from start-up Chainspace.

Sandler also pointed out the remaining challenges for FB, which is already reportedly pitching it to crypto exchanges. Particularly, the social media behemoth needs to demonstrate a value proposition for users “above what is available today in payments.”

However, if the FB coin turns out to be a success, Sandler sees many opportunities. FB might “eventually” get “into consumer lending, remittance, and physical payments.”

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A warm hello from Ukraine! My name is Lesia, I am a journalist, writer, political scientist, and crypto enthusiast. Before joining AltcoinBuzz in May I knew nothing about crypto, I was in the dark (it was very gloomy indeed). I was all skeptic and suspicious. But then one day, probably in June-July when I was doing a podcast with James and Matt, I finally grasped the concept in full. That is when I truly started to enjoy it thoroughly. I am a big believer in crypto and blockchain. There is no doubt that it is the future. But be patient, it needs time, like a fine Chardonnay. However, if you want to know when the next bull run is happening, I highly recommend asking Luc Lammers. He will definitely spill the beans! xxx

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