Barclays analyst, Ross Sandler, has said the cryptocurrency which is being developed by Facebook has the potential to generate revenues worth $19 billion by 2021.
According to a note released to investors on Monday, Sandler described the crypto effort by Facebook capable of yielding as much as $3 billion to $19 billion.
He noted that, Facebook shareholders are more than likely to accept any advertising-free revenue streams, while adding that his more conservative revenue estimate for the new coin is $3 billion.
The Barclays analyst recalled that Facebook had a similar payment project which could be compared to cryptocurrencies of today. Developed by California-based firm The Menlo Park in 2010, “Facebook credits” represented a virtual currency that allowed users to pre-pay those credits using domestic currencies and then use them for in-app-purchases.
However, Facebook will decide on what the interchange costs between fiat currencies and its possible new cryptocurrency would be. Meaning that, it may have a negative effect in terms of revenue on the business.
Citing analysis from Barclays, Sandler stated that the first version of “Facebook Coin” may be a single purpose coin for micro-payments and domestic peer-to-peer (p2p) money transfer, which is considered “very similar to the original credits from 2010.”
Meanwhile, sequel to a publication by Bloomberg in December 2018, which revealed that Facebook is developing its own cryptocurrency, the New York Times (NYT) published another article saying Facebook is “hoping to succeed where Bitcoin failed” with its crypto project. To this effect, NYT reports that the social media giant has gone as far as employing 50 new workers with the intention of developing a stablecoin that would incorporate it’s three fully-owned apps — WhatsApp, Facebook Messenger, and Instagram.