Facebook created a new blockchain group, headed by Coinbase board member
Facebook and Cryptocurrencies.
Facebook And Bitcoin
“I’m setting up a small group to explore how to best leverage Blockchain across Facebook, starting from scratch,” Marcus said in a post Tuesday afternoon on Facebook. Marcus joined the board of Coinbase, the leading U.S. marketplace for buying and selling cryptocurrencies, in December of 2017.
The news came as Facebook implemented its biggest executive shakeup in 14 years, Recode reported Tuesday. The company confirmed the report.
Facebook CEO Mark Zuckerberg said in early January that the company will begin looking into cryptocurrencies and “how to best use them in our services.”
Blockchain technology quickly creates a permanent, secure record of transactions between two parties and eliminates the need for a third-party intermediary, such as a banks. Bitcoin is the first application of the technology.
The move is noteworthy for a couple of reasons:
- The former president of PayPal, Marcus has a lot of payments expertise and has been in charge of Messenger through a lot of significant changes over the years. In fact, Facebook’s decision to split Messenger out of the core apps so that users had to download the standalone app in order to receive messages on mobile happened during Marcus’s first month on the job. He oversaw Messenger’s push into customer service bots, shopping and, more recently, advertising. His departure from that role is notable, especially since FacebookMessenger is just starting to ramp up its advertising business.
- The blockchain, which serves as the technical foundation for all cryptocurrencies like bitcoin is all the rage. Facebook’s decision to pursue blockchain technology will most certainly add some validity to the crypto industry, which has been very chaotic. This doesn’t mean that Facebook will build its own cryptocurrency, but there are many ways that blockchain technology could be used that have nothing to do with cryptocurrencies, including encrypted data storage. Marcus does have a personal interest in cryptocurrencies, though. He joined the board of cryptocurrency exchange Coinbase in December of 2017.