Facebook has denied entering into discussions with cryptocurrency firm Stellar (XLM), Cheddar reported August 10. Earlier today, Business insider reported that Facebook and Stellar had been contemplating a possible partnership to construct a Facebook variant of a Stellar blockchain.
A Facebook spokesman reportedly told Cheddar that the company “is not engaged in any discussions with Stellar, and we are not considering building on their technology.”
The announcement was made in reaction to Business Insider’s report which the two businesses had discussed a possible branch from the key Stellar network as part of its blockchain efforts. Sources from Stellar reportedly told Business Insider that, “It would make sense for Facebook to record payments trades onto a dispersed ledger like Stellar.”
While the news regarding Facebook’s collaboration with Stellar is in question, the social media giant has made some steps to embrace Blockchain technology. Last month, Evan Cheng, Facebook’s Manager of Engineering moved to the same position at the company’s recently established blockchain team. The team was initially formed in May by David Marcus, the head of Facebook’s messaging app Messenger, to explore possible programs for spread ledger technology.
Earlier today we reported about David Marcus stepping down his position at Coinbase to work on Facebook’s new blockchain project. The institution of this blockchain team tracked the implementation of a broader shake-up of Facebook’s product group, which led to the creation of three separate divisions: a “family of apps” group, “fundamental product services” and “a brand new platform and infrastructure.”
Later that month, anonymous sources familiar with “Facebook’s plans” advised Cheddar that Facebook is “researching” the production of its in-app cryptocurrency, even though having banned crypto advertisements on the platform earlier this season. Facebook banned crypto ads beneath a clause preventing advertisements for “Financial services and products often connected with misleading or deceptive promotional practices”
Stellar was originally established in early 2014 as a payment technology constructed on the Ripple protocol, even though it has underwent significant changes since. Back in July, Stellar obtained Sharia compliance certificate in the currency transfer and strength tokenization field. This means that Stellar is going to be able to boost its ecosystem in areas in which performance within the field of financial services requires compliance with Islamic financing principles.
