There have been rumors that Facebook is creating its own digital coin in reaction to the $1.7 billion investment fund Telegram raised for its own cryptocurrency project.

Together with Messenger, Whatsapp and Instagram, Facebook’s reach amounts to a total of 2.7 billion users. If Facebook decides to create its own digital coin and payments environment, it could potentially become the largest central bank in the world.

Facebook entering the world of online banking and payments could have far reaching consequences for credit card companies such as Visa and MasterCard. The transaction process as we currently know it, is pretty simple: we can pay without carrying around cash. On the back-end, either Visa or Mastercard settle the transactions made with any bank.

However, if Facebook would enter the market with its own digital currency, things could change a great deal. Instead of a credit card, users get a Facebook mobile wallet with coins to make online payments. These Facebook coins could completely transform e-commerce in terms of making payments even easier.

Users will be able to directly make online purchases (or sell items) in a wide range of apps that have already integrated a Facebook user sign-in. There will be no need for third parties, typing in your credit card credentials or PayPal account details. Online shopping will become a two-step process in Facebook apps.

The two-step payment environment via Facebook will only take a matter of time – the payments game is about to change drastically.

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