You’ve heard about the Facebook Coin from my previous post. You’ve also probably been hearing more news about Facebook’s cryptocurrency dubbed “GlobalCoin” as information is leaked or speculated on, however this is an unlikely name for the coin (there was an old cryptocurrency ICO called GlobalCoin in 2012).
What do we know about Facebook’s so called GlobalCoin?
- Facebook taking part in a Swiss company “Libra Networks” a financial blockchain company in Switzerland.
- Cryptocurrency (digital currency) weighted average of large fiat currencies.
- Global coin to be a medium of exchange and not a speculative digital asset – i.e. stablecoin
- Release date estimated Q1 2020.
- Global Coin to integrate with all Facebook platforms (Facebook, Instagram, WhatsApp).
- To especially target the underbanked or people without bank accounts.
- Facebook is working with banks and brokers in Switzerland, as well as payment providers such as Visa, MasterCard, Western Union and Merchants.
We know that Facebook announced a project termed “Libra” with the purpose of providing fast, easy transactions to users and for their e-commerce platform. Turns out that “Libra Networks” is a blockchain company based in Switzerland that Facebook has a large stake in.
It is a cryptocurrency stable coin. I have read rumours that it is to be a USD pegged stable coin. However, that does not sound like a “Global Coin”. Other rumours that Facebook’s Global Coin is to be a weighted average of large fiat currencies including the USD, EUR, UK Pound, Japanese Yen is much more likely given Facebook’s worldwide user base.
The release date for the Facebook stable coin, global coin, is set for sometime in Q1 2020, a push back from earlier rumours that it would be released in 2019.
The GlobalCoin would integrate with all of Facebook’s platforms, including WhatsApp, Instagram and Facebook. It appears that this would be a private stablecoin blockchain project that brings Facebook deeper into the financial industry.
Apparently, Facebook has lofty goals to help give banking access to those without the ability to access a bank. If you have a mobile smart phone with a Facebook App or Instagram account they can perform AML/KYC and you instantly have a mobile bank account.
Facebook is looking to raise ~ $1 billion in USD for funding their Libra project. Likely sourcing this money from large players such as Visa/MasterCard and Western Union themselves, as well as possibly other payment providers such as PayPal.
Barriers or Friction to Facebook’s Global Coin Cryptocurrency
- User demographics.
- “Big Tech” with a bad reputation for protecting people’s privacy is entering the crypto-space which is hyper-cognizant about privacy and controlling your own assets and data.
- Regulatory complexity.
Facebook has an active monthly user base of approximately 2.3 BILLION users.
There was an article from CCN that claimed “Facebook’s aging users and broke teens will reject globalcoin” citing statistics that 55% of Facebook’s user base is over age 35, and that the younger users that they do have tend to be of lower socioeconomic status.
Sure, this statistic could have real merit. However, “Facebook” the corporation is also WhatsApp and Instagram. Instagram definitely has a younger user base. Moreover, 45% of the Facebook platform users are less than age 35, which means that is well over 900 million users. Even if most of them are lower socioeconomic status, I think that is a skewed statement – if you take a large enough survey most people in it would be lower socioeconomic status because of… well… a little something called wealth inequality.
From my experience many people on CryptoTwitter are against the Facebook GlobalCoin because it is a large tech corporation with a shady history of infringing on user’s privacy and data, now becoming a super-behemoth, essentially as one of the world’s largest central banks.
Moreover, there is the regulatory complexity of banking over 2 billion people spread throughout the world. There is the concern of AML/KYC, the privacy of financial information, credit information, spending pattern data, consumer information protection, etc.
Things Unanswered About Facebook’s GlobalCoin
A specific release date. Q1 2020 is pretty broad as that is anytime between January first to March thirty-first.
How centralized will it be? Will users have the option to custody their own private keys?
Where will the Facebook GlobalCoin be accepted? Can I put some money on my Facebook account and travel the world with my iPhone and never have to worry about buying foreign currency again?
Is it its own cryptocurrency or will it be built on an Ethereum based platform (or some other platform)?
Will Facebook’s GlobalCoin integrate with XRP/RippleNet?
Will countries and/or corporations be able to trade/transact in GlobalCoin without worrying about exchange rates?
Markshire crypto’s Conclusion on Facebook’s GlobalCoin
Well, I don’t have a full conclusion, because the cryptocurrency has not been released or used yet.
I believe that GlobalCoin is probably not the final name for the coin. I’d imagine something more creative like “Libra” (the name of the project). Also a digital asset with the name Global Coin was released in 2012 (according to Investopedia)
I think that the adoption of cryptocurrency on a platform such as Facebook, WhatsApp and Instagram will serve a huge boon to the cryptocurrency industry. It brings cryptocurrency to the average person instead of them having to seek it out and learn about it.
I also think that regardless of success or failure, the Facebook GlobalCoin will bring worldwide attention to cryptocurrency on multiple fronts (large banks/corporations, as well as billions of average people worldwide on the Facebook platforms.
This should be good news for cryptocurrency adoption. Once users learn that Facebook’s “GlobalCoin”/”Libra coin” is a cryptocurrency many of them will explore Bitcoin, Ethereum, XRP and other alt-coins.
Would I buy some? Probably… if not for just experiencing it and seeing where it goes. If it truly is a stable coin then if you do not put any money into it you won’t be losing out on any gains.
I would love to hear your thoughts on Facebook GlobalCoin! Please feel free to share your opinions in the comments and/or post any links with further information on Facebook’s GlobalCoin.