Social media giant Facebook has reportedly denied considering a partnership with cryptocurrency firm Stellar (XLM), shortly after rumors emerged that the two companies had recently held talks.
Business Insider reported on Friday, citing unnamed sources, that Facebook has entered talks with the company behind the sixth-largest cryptocurrency by market capitalization to discuss a potential fork from the main Stellar network. Sources from Stellar reportedly told the publication that, “it would make sense for Facebook to record payments transactions onto a distributed ledger like Stellar.”
Shortly after the news broke, a Facebook spokesperson rebuffed the rumors, speaking for financial outlet Cheddar. The representative was quoted as saying:
“We are not engaged in any discussions with Stellar, and we are not considering building on their technology.”
Facebook’s crypto head steps down from Coinbase board
In related news, Facebook vice president David Marcus has stepped down from his position on the board of Coinbase, just eight months after joining the US-based cryptocurrency exchange.
Marcus has worked at Facebook since August 2014, and his role has been listed as “exploring blockchain at Facebook” since May 2018. He told the media on Friday:
“Because of the new group I’m setting up at Facebook around Blockchain, I’ve decided it was appropriate for me to resign from the Coinbase board.”
Speaking to CNBC, a Facebook spokesperson clarified that Marcus left the Coinbase board “to avoid the appearance of conflict, rather than because of an actual conflict.”
There had been speculation of Facebook buying Coinbase, with Marcus’ presence at both further fuelling the rumor. His departure, however, may indicate that the buzz was not founded and that the social media giant is rather planning to become a competitor to the crypto exchange.
While no definite statements have been officially issued, Facebook has clearly taken steps towards blockchain adoption. Apart from establishing a dedicated team to explore possible applications for distributed ledger technology, the company has also recently softened its position on crypto by reversing its ban on some cryptocurrency ads.
Facebook is rumoured to consider launching a crypto wallet or even its own virtual currency, but the company remains tight-lipped regarding its plans.