Categories: Market Overview

Barclays: Facebook cryptocurrency could raise $ 19 billion.

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.

Facebook Cryptocurrency Could Raise $19 Billion, ‘Reinvigorate’ Company: Barclays, CCN, Mar 12

The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

Share
Published by
The FxPro News Team

Recent Posts

EURCHF Wave Analysis 20 December 2024

- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…

3 days ago

USDCHF Wave Analysis 20 December 2024

- USDCHF reversed from resistance zone - Likely to fall to support level 0.8860 USDCHF…

3 days ago

The US dollar ends the year on a strong note

The US dollar is at two-year highs. Factors such as changes in the Fed's monetary…

3 days ago

How deep will crypto dive?

The crypto market is experiencing a decline, with a potential further drop in value. Bitcoin…

3 days ago

EURGBP Wave Analysis 19 December 2024

- EURGBP reversed from support zone - Likely to rise to resistance level 0.8300 EURGBP…

4 days ago

EURJPY Wave Analysis 19 December 2024

- EURJPY broke resistance zone - Likely to rise to resistance level 165.00 EURJPY currency…

4 days ago

This website uses cookies