The launch of a truly global cryptocurrency such as that backed by Facebook is huge news for the cryptocurrency markets. The recently announced Globalcoin – Facebook’s own cryptocurrency is now causing a stir within the news headlines. Is this a good thing, is this a bad thing or is this something we should totally avoid altogether?
Facebook is one of the world’s biggest tech firms, responsible for the world’s biggest social network. There are currently around 2.38 billion users on Facebook, therefore any cryptocurrencies or tokens created by Facebook should be expected to see huge levels of adoption, Globalcoin is no exception to this. Now, we want to delve into some of the facts about Globalcoin in order to understand what it is and what it will do. Is this going to challenge Bitcoin and storm through the markets as a viable cryptocurrency, or, rather is Globalcoin a utility token, simply designed to make Facebook’s products; Facebook, Instagram and Whatsapp, a little better?
So, what’s the plan with Globalcoin? According to the BBC:
“Facebook is planning to set up a digital payments system in about a dozen countries by the first quarter of 2020. The social media giant wants to start testing its crypto-currency, which has been referred to internally as GlobalCoin, by the end of this year. Facebook is expected to outline plans in more detail this summer, and has already spoken to Bank of England governor Mark Carney.”
By exploring the legal side of this and by talking to high ranking officials within the financial world, it’s clear that Facebook’s plans are to create more than just a utility token here, they genuinely seem to want to create a cryptocurrency that can be adopted by the masses. Could Facebook’s 2.38 billion users be about to gain access to their very own cryptocurrency here?