It was not too many weeks ago that Facebook banned all crypto-related ads from its site. Crypto advertisers were upset while the mainstream media at the time used the story to create more fear, uncertainty and doubt (FUD) in the minds of investors.
Here we are just a few weeks later, and it has now been revealed why Facebook banned crypto ads: they’re planning to create their own cryptocurrency, and they simply don’t want any competition on their site:
It’s not the first time the idea of a Facebook coin has been floated, but the plans take on some greater meaning in light of Facebook’s recently reshuffled executive structure and newly formed blockchain group.
Blockchain, the decentralized record-keeping system, could help tackle some of Facebook’s most bothersome problems, like identity verification or advertising sales. It’s also the technology behind most cryptocurrencies, logging ownership and transfers of the digital tokens.
“Like many other companies Facebook is exploring ways to leverage the power of blockchain technology. This new small team will be exploring many different applications,” a Facebook spokesperson told CNBC in a statement.
It seems rather than being anti-crypto, Facebook is simply anti-competition. At least, that’s how many people on Twitter feel.