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Facebook today announced a relaxation of the ban on advertising imposed on companies offering products and services related to cryptography. This decision comes as the social media giant is stepping up its own efforts to create a fixed part to use in some of its applications.
Many in the cryptographic community argue that a digital asset promoted by Facebook would compete with the US dollar and other fiduciary currencies instead of Bitcoin. At the same time, others said the company's efforts to create its own digital currency could prompt many new users to enter crypto.
Social media giant further eases advertising guidelines for cryptographic assets
According to a blog post published today by Facebook, the social networking site will further relax its previous advertising ban on crypto and blockchain technologies. The message reads as follows:
"We listened to the feedback and evaluated the effectiveness of the policy. Although we still have to ask users to submit crypto-currency promotion ads, from today we will reduce this rule so that it is no longer subject to authorization. Prerequisite for ads related to blockchain technology, industry news, education or cryptocurrency related events. "
According to Facebook's advertising policies and community standards, some products and services fall into a list of banned products – such as ICO offers – and others on a shortlist – such as exchanges. Any prohibited advertising is immediately rejected, but the restricted content will still require approval, which would imply a review process:
"This process will continue to take into account the licenses obtained, whether they are publicly traded (or a subsidiary of a public company) and other relevant public records of their business."
The ban on encrypted advertising on Facebook was first announced in January 2018. This initial policy was simply to block all advertising relating to crypto or blockchain technology, on the grounds that such advertisements could potentially be harmful to users of the site. The ban was originally released in June of the same year to include the clause relating to the written authorization required for certain products or services.
The announcement of the loosening of the ban on Facebook advertising comes as the company planned to launch its own digital asset – a so-called stable dollar-indexed amount. Since it seems to lack properties that make Bitcoin a good value reserve potential, many analysts have argued that Facebook's unencrypted asset will represent competition for the dollar, rather than for Bitcoin.
In fact, some analysts in the cryptography industry believe that launching a currency by the social network will ultimately be a boon to Bitcoin and other digital assets. Spencer Bogart, of Blockchain Capital, said the project could see a huge influx of new users eager to explore truly decentralized digital resources:
ICYMI: @CremeDeLaCrypto joined @TheStalwart sure #WDYM to talk about a possible offer of digital parts on Facebook as well as prospects for Bitcoin this year pic.twitter.com/OgBVda6kJj
– Bloomberg Crypto (@crypto) May 8, 2019
"It's like being on the Internet; so that people can turn away and start to own bitcoins, they can begin to possess ether. A certain percentage of the user base is likely to do that, and again, I think that is going to be a dramatic catalyst. "
He also argues that news from Facebook's projects has "kindled a fire" with financial institutions considering working on crypto products and services. Many would have been inspired to get started as a result of the social network initiative. An example provided by Bogart is the recent announcement by TD Ameritrade to begin offering exposure to cryptographic assets.
Related reading: Blockchain Capital Partner: Facebook cryptography project could lead to massive influx of new crypto users
Featured image of Shutterstock.
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