About the stake:-
The deal of Facebook and jio could pave the way for the cryptocurrency in the country where it is banned. Facebook is buying a stake in Reliance Jio, India’s largest telecom operator. The deal has boosted Reliance Industries’ share price and welcomed by the Indian cryptocurrency community. Besides Facebook’s investment into Reliance Jio, Whatsapp has also entered into a partnership with Jio Platforms and Reliance Retail.
Effects of stake:
The mega Facebook-Jio deal could pave the way for the growth of cryptocurrencies in India driven by the former’s own digital currency Libra. Last year, Facebook assembled a group of companies to create an open-source cryptocurrency Libra, which could potentially be used as a payment option in applications such as Messenger and WhatsApp.
Facebook, the world’s largest social media company, recently invested $5.7 billion for a 9.99% stake in Reliance Jio Platforms. Experts see this as an opportunity for both companies to tap into the digital payments market while also promoting blockchain innovation in India.
Reliance Jio Infocomm Ltd (Jio) has already pledged to develop the biggest blockchain network in the world. The company made an official statement during the annual general meeting (AGM) on 12 August last year. It plans to install a pan-India blockchain network for industries. So far, only startups are involved in blockchain and cryptocurrencies, but experts believe Reliance and Facebook’s entry into the bandwagon could be a game-changer.
Effect of cryptocurrency:
Nonetheless, the partnership between Reliance Jio and Facebook “will have a spillover effect” on cryptocurrency. As more people in India will start experimenting with digital assets, Crypto Kanoon noted. “There is also going to be [a] surge in the search for terms like ‘blockchain‘ and ‘bitcoin.'” Furthermore, the news platform added that having a local partner could help Facebook navigate “various regulatory issues, including those related to privacy and local storage,” asserting.
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