According to Barclay internet analyst Ross Sandler, Facebook has a lot to look forward to with its cryptocurrency.
Facebook is developing a cryptocurrency to use for peer-to-peer payments called “Facebook Coin.”
Sandler says that the company’s cryptocurrency could be a $19 billion revenue opportunity.
He wrote to clients this week, “Payments could help Facebook develop an entirely new revenue stream aside from advertising — something “sorely needed at this stage of the company’s narrative.”
“Merely establishing this revenue stream starts to change the story for Facebook shares in our view,” Sandler said.
According to a Bloomberg and New York Times report, the social media giant is reportedly making the cryptocurrency for global payments that will be tied to the value of traditional currencies and available to use through its messenger “WhatsApp.”
“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 also noted.
“Based on our checks, the first version of Facebook Coin may be a single purpose coin for micro-payments and domestic p2p money transfer (in-country), very similar to the original credits from 2010 and Venmo today,” Sandler said.
Disclaimer: We have no position in Facebook, Inc. (NASDAQ: FB) and have not been compensated for this article.