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Facebook's crypto asset plans have seen many headlines already in 2019. Financial giant Barclay's reportedly stated the new asset might further Facebook as a company.

Facebook's asset plans

In a February 28, 2019 article, The New York Times provided details on Facebook's secretive plans for a Facebook Coin. The asset will reportedly aim for global usage on the Facebook-owned WhatsApp platform. The Times also reported on a future connection of Facebook's three platforms: Facebook Messenger, Instagram and WhatsApp.

Ross Sandler from Barclays

A March 11 report from CNBC revealed a few positive thoughts from financial powerhouse Barclays on the matter. According to a note to clients from Barclays analyst Ross Sandler, CNBC said "Sandler forecasted as much as $19 billion in additional revenue by 2021 from 'Facebook Coin.'” Sandler noted the asset could alter Barclays view on Facebook. “Merely establishing this revenue stream starts to change the story for Facebook shares in our view,” Sandler said, via CNBC's report. Facebook's stock price saw a fair bit of difficulty over the course of 2018, CBNC noted. Adding a crypto asset into the mix could help Facebook's revenue production, which Sandler said the company needs at this point. “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,” Sandler explained, according to CNBC.

Facebook Credits attempt

Facebook did attempt a type of digital asset several years ago, called Facebook Credits. A 2012 article from TechCrunch suggested three main reasons the original asset failed. Facebook Credits did not gear itself toward the concept of sharing. "Consumers purchased and used Facebook Credits in a vacuum," TechCrunch wrote. Additionally, TechCrunch said Facebook didn't present an appealing use case for the asset, and "Facebook discouraged its partners (developers) from supporting Credits." According to CNBC, Sandler noted Facebook incurred significant transaction costs throughout the process associated with Facebook Credits, leading to adverse effects on overall profit for the company.

New circumstances

After all those years, CNBC noted Facebook has more customers and successful apps (such as WhatsApp and Instagram). The crypto space is also more developed. This combo could provide a fresh outlook for the new crypto asset, according to Sandler's comments in CNBC's article. Sandler also added that Facebook now has David Marcus, a previous top brass at PayPal, to help in its new endeavors. Other key players are also part of the team. However, Sandler montioned that the social media giant must show users the asset is worth using, “above what is available today in payments,", but also regain the public's confidence, due to last years events.

Originally posted on Crypto Insider : https://cryptoinsider.com/facebook-coin-could-boost-revenue-by-19-billion/

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