Will Facebook cryptocurrency GlobalCoin be the catalyst for mass adoption propelling cryptocurrency usage from 30 million to 2.4 billion? Maybe, but more worries remain.
Facebook Quietly Planning Killer App
If one thing was remarkable about Facebook and cryptocurrency this time last year, it was the platform's hostility towards it.
In January 201
Now, after hinting at some kind of FaceCoin and shortly after announcing the launch of his digital currency network Libra in Switzerland, it seems like "GlobalCoin" is a trip.
Facebook published the news that GlobalCoin will be launched in a handful of selected countries by the first quarter of 2020.
Having their own crypto competition is meant to allow people to pay for things in a reasonable and safe way without the need for a bank account. This extends beyond the Facebook ecosystem and to online shopping and money transfers.
With GlobalCoin, Facebook aims to disrupt existing payment networks and take on the expensive and failing banking system.
And with 2.2 billion users all over the world, can GlobalCoin be the killer pin that sparks massive adoption of cryptocurrency?
Zuckerberg talks to Winklevoss Twins Over GlobalCoin
Possibly. Although Facebook's GlobalCoin will look much different than any cryptocurrency that maintains privacy values. It will be highly regulated and require users to upload countless sensitive data to pass strenuous KYC controls.
But that doesn't stop Zuckerberg. He has already been in talks with US Treasury and Bank of England Governor Mark Carney officials. The company also includes existing money transfer networks such as Western Union in calls to allow people without bank accounts to send money faster.
According to Financial Times Zuckerberg himself consulted the sworn enemies Tyler and Cameron Winklevoss.
Following a very public lawsuit over claims that Zuckerberg stole the idea of a social network, the founders of Gemini Exchange seem an unlikely partnership for Facebook.
However, Gemini is known to be a highly regulated crypto exchange in the United States. This is something that will be attractive to Facebook, as it will be continuously under the supervision of the supervisory authority.
Would you like to give Facebook more private data?
The giant of technology has the means, range and means to create cryptocurrency on the masses with GlobalCoin. But many concerns remain.
Facebook has proven unreliable in protecting consumer data and unscrupulous when selling it to advertisers.
One of the biggest obstacles to GlobalCoin adoption is whether Facebook users in the West would rely on the company with even more of their sensitive data.
With a retreating user base, India is a major target for the social media giant. But unfriendly cryptocurrency regulation in this country will throw several challenges its way.
Whether Zuckerberg can win over a skeptical user base, there are still local regulators in various jurisdictions and several central banks. But while this "cryptocurrency" will be far from an anonymous high value transfer, it can only be the killer leg that takes crypto from the low millions to 2.4 billion users.
Will GlobalCoin succeed and want It is something like Bitcoin? Share your thoughts below!
Pictures via Shutterstock