Facebook Reportedly Discussing Its Crypto Plans With Gemini’s Winklevoss Twins

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by Bhushan Akolkar · 3 min read
Facebook Reportedly Discussing Its Crypto Plans With Gemini’s Winklevoss Twins
Photo: PxHere

Facebook is giving an aggressive push to its crypto plans while having a word with crypto exchanges and high-frequency trading platforms. The company plans ahead to make major inroads in the online payments industry.

Several reports since the beginning of 2019 have hinted that the social media giant Facebook is working on its crypto plan. But a recent report from the Financial Times suggests that Facebook is reportedly in talks with Winklevoss twins, the founders of popular cryptocurrency exchange Gemini.

Well, this is certainly interesting considering the hostility the Winklevoss’ have shared with Zuckerberg. Once upon a time, the twin brothers had filed a lawsuit accusing Zuckerberg of stealing their social network idea. However, it seems that both the parties have decided to put the past behind and look ahead.

Speaking to CNBC, Ben Mezrich, author of the book behind the film “The Social Network,” said:

“Facebook’s idea is to launch their own crypto. So who do they have to reach out to? Now the twins know more about this than Facebook does, so they’re one of the people that [Zuckerberg] has to go to to get into this world.”

Facebook is reportedly making some aggressive tie-ups with companies and exchanges in the last few months. Two sources familiar with the matter said that Facebook is talking to Coinbase and Gemini allowing users to store their Facebook Coins safely. Besides, Facebook also asked these crypto exchange to offer crypto-to-crypto and crypto-to-fiat conversions for its native cryptocurrency.

The sources familiar with the matter also said that Facebook is talking to Chicago’s popular high-frequency trading platforms – DRW and Jump. However, all the companies working with Facebook have refused to comment due to a non-disclosure agreement.

Zuckerberg’s Ambitions In the Payments Industry

With Zuckerberg having some of the most dominant social media platforms under his control he plans to tap in the payments industry. Speaking at Facebook’s F8 conference last month, Zuckerberg showed up key interest in transforming the payments industry.

He said that he would like to see Facebook becoming a platform to send money quickly. He added:

“When I think about all the different ways that people interact privately, I think payments is one of the areas where we have an opportunity to make it a lot easier. “I believe it should be as easy to send money to someone as it is to send a photo.”

David Yermack, professor of finance and business transformation at the New York University Stern School of Business, notes that Facebook can leverage its huge customer base while making major inroads in the banking industry. Professor Yermack stated:

“There is a huge opening for social media companies to move in and take a big part of the banking business. They have an advantage due to their customer bases and the frequency with which people use them. [But] the main challenge is regulation.”

According to the recent report from CoinSpeaker, Facebook is likely to release its ‘Global Coin’ by the Q1 of 2020.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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