Facebook has announced new subsidiary Calibra will introduce a digital wallet for the planned digital currency Libra, which will be available in 2020.
Through Calibra, Facebook has announced its users will be able to save, send and spend Libra using Facebook Messenger, WhatsApp or the standalone app through its use of blockchain technology.
According to Facebook, 1.7 billion people around the world - 31% of the global adult population - remain unbanked, which suggests there is a large market for a scalable digital currency.
So far 28 groups have announced they will become backers of Libra and each founding partner will be expected to contribute a minimum of $10m to kick-start the project, according to the Financial Times.
Other big players in the technology sector such as Google and Amazon have not yet signed up to back the venture with banks remaining uncertain of regulation and logisitics.
Head of Calibra David Marcus commented: "We look forward to participating in the Libra network as a founding member, as well as through providing our community with access to Libra through Calibra."
Blockchain export, CEO and founder of Gautlet Network Tarun Chitra added: "Libra's decision to use a more traditional distributed consensus algorithm is likely to pay off in the long run. This is because the competitive landscape is focused on applying riskier consensus algorithms that rely on unconventional security models and/or novel cryptography that has not been deployed at scale."
Cryptocurrency analyst for Interactive Investor Gary McFarlane said competitors such as Amazon and Google will be looking to "either accelerate whatever they already had planned for crypto" or re-examining "previously shelved ideas".
"Amazon for one will not want to see Facebook grabbin a chunk of e-commerce real estate without a fight, and having its own cryptocurrency would be the obvious way to fight back," he said.
The news follows Facebook's recent unveiling of its plan to launch its own digital currency as early as Q1 2020.
According to Financial Times sources, who are familiar with the social media network's secretive Libra project, Facebook is in the final stages of launching a 'stablecoin', a digital currency pegged to the US dollar.
If the plans are implemented, Facebook's two billion users could allow payments or transfers within the family of apps, including Messenger.
The cryptocurrency being explored in Project Libra would need to be a collaborative network with payment specialists; founder of Facebook Mark Zuckerberg would need to work closely with the likes of the US Treasury and payment providers to navigate the regulatory minefield.
"Facebook has all the prospects to propel crypto into everyday lives... in the next three to five years," said an FT source, but added: "There are headaches to be worked out."
It would not be the first time Facebook has looked into establishing their own digital currency. Ten years ago, the network tried to launch Facebook Credits as a digital currency for in-app purchasing.
However, the audience for this next step in the technology evolution was not large enough, so the project ended after just two years.
In addition, with Facebook's Cambridge Analytica data scandal, which led to an FCA fine of £500,000, fresh in investors' and users' memories, and with GDPR guidelines firmly in place, a completely transparent platform like blockchain will need particular scrutiny and resources.