The popular Russian social media platform VKontakte (VK) could be developing its own digital currency. The information was released by the local news outlet RNS a few days ago. This is not the first large social media company that wants to release its own digital currency. Telegram is also working on its own blockchain network and cryptocurrency.
VK Could Release a Cryptocurrency
According to an unspecified person that is familiar with the matter, the firm wants to create a cryptocurrency that would be used by the users of the platform. Nonetheless, the firm has not yet made a final decision regarding the launching of the coin.
RNS was able to get a presentation from VK that shows how users would be able to obtain the firm’s tokens. One of the ways they will be able to acquire these coins is by exchanging them for their activeness and time spent on the platform.
Users can easily accumulate these coins and spend them later in the platform, exchange them for goods and services, convert them to fiat currency or transfer them between users. The VK Pay service is a cashless money transfer service that allows individuals to send funds to each other using credit or debit cards.
It is worth mentioning that individuals would also be able to send small sums of money to post creators or other users that share posts in the social network. If the firm decides to launch a digital asset, it could reach more than 42 million users just in Russia. According to Alexa, this is the third most popular site in the country.
Pavel Durov is the founder of VK and also the co-founder of Telegram. The company Telegram has been banned in Russia since it offers users the possibility to send private messages and open private conversations with encryption methods.
There are other social networks that are also thinking about launching their own digital currencies. Some of them are Telegram, WhatsApp, Line, Kik and also Kakao. Kik has already launched a virtual currency known as Kin. Meanwhile, Telegram and Line have advanced plans to launch their own digital assets to the market.
Some reports spread a few months ago regarding the possibility of Facebook launching a virtual currency for WhatsApp users in India. Apparently, the intention was to offer cheap and fast remittance services to users in India. Although the company has not announced anything about this possibility, the virtual currency has already received many critics from industry experts and the whole crypto community.