Investors went bullish on Facebook ahead of a formal announcement of Facebook about its much anticipated entry into crypto currency.
Facebook’s stocks have risen by 4.2% on Monday as it is expected that Facebook will be making its entry into the crypto currency space. As per The Wall Street Journal’s reports, the tech giant has partnered with firms like Visa, Pay Pal and Uber to create their new crypto currency which is named as Libra.
Facebook Executive, David Marcus is the man behind this initiative. David had been running Facebook Messenger before assigned the new role of looking into launching of crypto currency by Facebook. Before coming to Facebook he was PayPal’s President. With the coming of the new digital currency, Facebook users will be able to pay for goods and send money using the apps of the Facebook family like WhatsApp and Messenger. However more details are not available about this.
Analysts are hopeful of the new crypto currency to be launched by Facebook and said that this would help in creating new revenue sources for Facebook outside of its core advertising businesses. An analyst at SunTrust said that they believed that this would be a major breakthrough for Facebook and would help the firm in growing their fame beyond advertising, to financial and commerce services as well thus expanding their prospects of growth and addressable markets.
It is understood that Facebook may also open physical stores from where people could buy Facebook’s crypto currency. In addition, Facebook employees will also be given an option to receive their salaries in crypto currency. This move will definitely garner interests from crypto currency investors globally.
There was 3% rise in the price of the popular digital currency bitcoin anticipating that a new interest would be sparked with the entry of Facebook into the crypto currency space.