Facebook's blockchain division took a significant hit last week, left the board at Coinbase . David Marcus with the announcement of his departure from a role he held since last December, citing conflict of interest. While transparent plans for blockchain remain unclear, David Marcus's decision could be a strategy for Facebook's bigger involvement in the digital payments arena.
With a rich history in online transactions, Marcus, before joining Facebook's ranks, honed his skills at PayPal and was integral to Facebook Messenger's growth. Now, it's evident he's embarking on something major with Facebook, although precise details remain under wraps.
Marcus's exit from the Coinbase board marks a pivotal moment, David Marcus commented to BI as disclosed by a Facebook spokesperson regarding his decision,
\"Given the new blockchain-oriented initiative I'm creating at Facebook, I felt it essential to resign from the Coinbase board.\"
Facebook isn’t the only tech giant eyeing a blockchain-driven payment gateway via a messenger platform. Yet, despite its vast resources, its current reputation might overshadow its ambitions. A slew of controversies and trust issues could shape whether users will be comfortable with Facebook managing their finances.
Facebook Holds a Unique Position
The blockchain team under David Marcus at Facebook is still in its infancy. Although announced only a few months ago, specifics about their future blockchain endeavors remain elusive. However, after communicating with Stellar , and declining a partnership, the likelihood of a payments platform is rising.
Amid controversies surrounding privacy concerns, Facebook could leverage blockchain to regain public trust. Depending on how they architect a blockchain-based platform, it might reflect their commitment to the user-centric privacy promises they've been vocal about recently.
For Facebook, emerging damaging reports pose a continuous challenge. As chronicled by The Burning Platform a blog in 2011, the company purportedly described its platform
\"as a tool for market research and ad saturation, capable of influencing public opinion during any political race.\"
We've since seen Facebook's potential to fulfill such capabilities, often selling intricate user information to firms like Cambridge Analytica. It's likely that many entities beyond Cambridge Analytica had access to this sensitive data for multifarious purposes.
People Have Many Other Options
As alternatives mushroom for those eyeing messaging-based payment solutions, Facebook grapples with its image issues. Startups like Zulu Republic exploit the Telegram messenger to craft trustworthy crypto payment systems. Their Lite.im feature lets Telegram users transfer Litecoins via the platform, ensuring data safety with RSA encryption and personal password protection.
Zulu Republic underscores the necessity of secured communication channels, asserting that Telegram is, “among the most secure messengers globally,” where privacy protocols are “innate.” Users generally resist platforms that monitor them incessantly, only to manipulate public sentiment. Regrettably for Facebook, their historical disregard for privacy might perpetually haunt its foray into digital finances.
Facebook is tasked with rebranding to rebuild user trust and vie against competitors untouched by privacy scandals. Blockchain might be a part of their strategy, but it could very well be insufficient and overdue.
