What Exactly is Facebook's Position on Blockchain and Cryptocurrencies

In January, Facebook announced a new ad policy that effectively banned cryptocurrencies as it sought to “prohibit ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency.” Facebook’s decision to ban crypto ads sent the cryptocurrency market spiralling in addition to other factors.

The market cap of the general cryptocurrency is down more than 51% in the year-to-date period, Bitcoin has declined 49% in the same period, and Ethereum has lost more than 39% since the markets opened for trading this year.

Interestingly, as the market enter the second half of 2018, Facebook has started making some interesting moves that’s suggests that it is changing its positioning on cryptocurrencies. This piece provides insight into some of the latest developments from the social media giant as it relates to cryptocurrencies and blockchain technology.

Facebook revised its crypto ban

Last month on June 26, Facebook revealed that it will permit ads promoting cryptocurrency and related offerings from pre-approved advertisers. The social media giant revealed that advertisers who want to run crypto-related ads must apply to have their eligibility assessed after which their ads might be floated. Of course, the firm will still provide an opportunity for consumers for flag and report misleading ads, but the firm is open to studying cryptocurrencies and blockchain technology with a view to revisiting its ad policy down the road.

Interestingly, the news of Facebook’s reversal of its ad policy didn’t move the cryptocurrency markets as traders and investors continue to wrangle with a seemingly endless downturn. However, it would be instructive to note some fundamental economic factors precipitating the failure of the crypto markets to move in response to the reversal of the crypto ad ban. The ETH EUR pair for instance is facing headwinds from the uncertain economic prospects of Europe as the realities of Brexit start to set in. The BTC/USD pair is facing pressures from the effects of the dynamics of the commodities market on the greenback as the prospects of oil prices remain mixed.

Facebook appoints director or Blockchain Engineering

While many crypto enthusiasts might be seething over the fact that Facebook is still banning some crypto ads and proscribing all ICO content, the firm is silently making moves to potentially strengthen its position in the blockchain industry. Evan Cheng, Former Director of Engineering, Programming Languages and Runtimes has revealed via his LinkedIn Profile that he has been appointed as Facebook’s Director for Blockchain Engineering.

Cheng who spent 10 years in different positions at Apple before he joined Facebook about three years ago is a big crypto believer and evangelist. In his Twitter profile, he describes his day job as Programming languages, runtimes, and compilers while his night job is mainly blockchain and crypto.

About two months ago, Facebook launched a team that was saddled with the responsibility of exploring blockchain technology and how it might be adapted for use on its platform. David Marcus, Facebook’s head of Messenger and a member of Coinbase’ board leads the strategy team. Marcus is a vocal cryptocurrency enthusiast. Before the formation of the group, he had hinted that Messenger is open to exploring how it can use cryptocurrencies to power payments on the platform.