Importance Of Facebook’s Globalcoin
It’s expected that Facebook’s cryptocurrency will be good for blockchain. It for sure is going to take some market share from a few smaller coins and even cause a dip or two in bitcoin if it really gets legs, however, more importantly, it will help in accelerated mass adoption — something that’s better for all cryptocurrencies.
Facebook has the world’s attention. Everything they do is being highly scrutinized, and that this will lead to clearer regulation in the space, something that will help everyone involved in the blockchain space— from retail investors to blockchain developers.
Some days ago, head of the social media giant’s financial services in Northern Europe, Laura Mccracken, announced that they’re going to release the White Paper for their cryptocurrency GlobalCoin (nicknamed Project Libra) on June 18th. While the crypto industry seems unsure of how to feel about this new coin, I’ve chosen to take a more positive stance, at least financially.
FACEBOOK VS BITCOIN
Facebook’s GlobalCoin and Bitcoin would be complementary to each other than competition. Because Facebook is a much mainstream medium, it’s the introduction of a coin that will normalize cryptocurrency use faster than any alternative, sparking curiosity across its gigantic user base and usher in the next big wave.
What is one of the largest hurdles to mass adoption? Mostly the lack of user-friendliness of the technology — Facebook has already proven user-friendly as it already has 2.48 billion monthly active users. Bitcoin and other altcoins are intimidating. The crypto industry as we all know isn’t the most friendly. Facebook has already proven its ability to connect people down their user journey, they’ll be able to make their coin as user-friendly as traditional currencies.
ADVANTAGES OF THIS PROJECT
We all know the kind of power and influence that Facebook wields, that is recognized by the government, Project Libra will closely focus attention on cryptocurrency regulation. Facebook is sure going to come across financial regulatory grey areas as it launches Project Libra.
While there are many small projects that take fewer compliance efforts, thinking that they’re too small to be called out for it, Facebook will be dealing directly with governments so as to discuss issues that will be covered in the media, hyped and publicized to levels that most crypto-related news pieces never dream of reaching.
Beyond the positives that Facebook is about to bring to the crypto-community, GlobalCoin can also help citizens of third world countries who don’t have a stable currency ( least as stable as the Dollar is..) to store their value within.
GlobalCoin will be attached to a “basket of fiat currencies”, and is expected to be a stable coin. Many companies have tried to create a stable coin in the past but have got little success. But, Facebook surely has the time, money, and resources to solve the issue effectively. Facebook is offering people of third-world countries a chance to become a part of the global economy.
Crypto often shows a scripture-esque rant about how Bitcoin will help bank the unbanked, providing banking services to the part of the world without access to them. But in reality, this seems to be a far more achievable target for GlobalCoin. If it is accomplished, it will help to create a tremendous amount of goodwill and global citizenship that Facebook could use in light of the ongoing negative media attention following the 2016 election.