Facebook Refutes Stellar (XLM) Technology Adoption
Social media giant Facebook has denied reports that it has entered an agreement with Stellar Lumens.
The firm stated that it doesn’t have any long-term partnership with Stellar neither is it looking to work on its technology.
Earlier reports suggest a partnership
On Friday, reports surfaced that Facebook and Stellar had been in discussion. This led to speculation by industry experts who suspect a partnership between the two. However, Facebook has come out to refute those claims.
A Facebook spokesperson told financial outlet Cheddar
We are not engaged in any discussions with Stellar, and we are not considering building on their technology.
The report of a possible partnership between Facebook and Stellar originated from Business Insider. The report stated the social media giant was looking at the development of a Stellar-based blockchain to implement on their platform.
In the report, Business Insider included a quote from a supposed Stellar source who claimed that it would be beneficial for Facebook to partner with the cryptocurrency firm.
With Facebook denying such claims, no one at the cryptocurrency company has made any comment on the earlier reports.
Facebook VP resigns from Coinbase board to focus on Facebook’s blockchain initiative
Facebook refuted the partnership claims just a few hours after reports surfaced that Facebook Vice President David Marcus resigned from his position as a board member of cryptocurrency exchange Coinbase.
Marcus revealed that he stepped down due to a possible conflict of interest after he was made the head of Facebook’s blockchain initiative. Coinbase praised Marcus for his contribution to the exchange over the past few months.
Stellar is one of the cryptocurrencies being considered as a possible addition to Coinbase in the near future.
Getting to know Brian [CEO of Coinbase], who’s become a friend, and the whole Coinbase leadership team and board has been an immense privilege. I’ve been thoroughly impressed by the talent and execution the team has demonstrated during my tenure, and I wish the team all the success it deserves going forward.
Even though Facebook has denied partnership with Stellar, the social media company has been working on developing a presence in blockchain. There are expectations that the company might be looking at developing a cryptocurrency-based payment system.
Back in July, Facebook’s Director of Engineering Evan Cheng was moved to the company’s blockchain team. The team was formed with the aim of exploring applications for blockchain and other distributed ledger technology (DLT).
Stellar still has potential
Despite this minor setback, Stellar is a cryptocurrency with a lot of potentials. The cryptocurrency was developed in 2014 as a payment technology built on the Ripple protocol.
In July this year, Stellar Foundation received Sharia compliance certification in the money transfer and asset tokenization field. With that, Stellar could work easily in regions where compliance with Islamic financing principles is required.
With the rise in XLM price following the news of a potential Coinbase listing, investors will be rather disappointed that the Facebook partnership rumors are false.