In January 2018, Facebook imposed a blanket ban on cryptocurrency ads, citing concerns over scams and misleading promotions. By December, the company was reportedly developing a stablecoin for WhatsApp to facilitate money transfers—especially in the Indian remittance market.
This dramatic shift highlights Facebook’s evolving relationship with digital assets, from initial skepticism to active participation in blockchain development.
January 2018: Crypto Ban Despite Zuckerberg’s Optimism
At the start of 2018, Mark Zuckerberg expressed interest in encryption and cryptocurrency as tools for decentralization:
“There are important counter-trends to this – like encryption and cryptocurrency – that take power from centralized systems and put it back into people’s hands.”
Yet, by the end of the month, Facebook banned cryptocurrency-related ads, citing concerns about deceptive promotions. This move set a precedent, as Google and Twitter soon followed with their own restrictions.
February 2018: ‘No Plans for Crypto,’ Says Facebook’s Head of Messenger
Facebook’s David Marcus, then head of Messenger (and later head of Facebook’s blockchain division), dismissed the idea of integrating cryptocurrencies into Facebook’s platforms due to scalability and cost issues. However, he acknowledged blockchain’s potential, signaling that Facebook was at least keeping an eye on the space.
May 2018: Facebook Launches Blockchain Division
In May, Facebook formally established a blockchain team, led by David Marcus. Shortly after, reports emerged that the company was exploring its own digital token—a rumor Facebook neither confirmed nor denied.
June 2018: Facebook Reverses Crypto Ad Ban (Partially)
By mid-year, Facebook softened its stance on cryptocurrency advertising, allowing pre-approved ads while maintaining restrictions on ICOs and binary options. This policy shift suggested Facebook was reevaluating its relationship with digital assets.
December 2018: Facebook Reportedly Developing a Stablecoin
Reports from Bloomberg and Cheddar indicated that Facebook was developing a stablecoin for WhatsApp, targeting India’s remittance market. With WhatsApp’s 200 million+ users in India and the country receiving $69 billion in foreign remittances in 2017, the move aligned with Facebook’s broader fintech ambitions.
While details remain scarce, the company is reportedly still determining which asset the stablecoin will be pegged to.
What’s Next for Facebook and Crypto?
Facebook’s crypto journey in 2018—from blanket bans to stablecoin development—reflects a broader industry trend: initial skepticism, followed by strategic entry into blockchain technology. If the stablecoin project succeeds, Facebook could become a major player in digital finance, reshaping global remittances and online transactions.
