Social media giant Facebook is reportedly planning to announce its cryptocurrency, GlobalCoin, later this month, June 2019.
Facebook also indicated they could even allow employees working on the project to accept payment in the cryptocurrency, which is said to be a stablecoin pegged to the US dollar.
According to The Information (via CNBC), the company will let users trade, store, and exchange its cryptocurrency for fiat currency through Facebook’s apps, including messaging platforms Messenger and WhatsApp.
BitCoin and these alternative coins need a distributed system, or a connected set of nodes in order to operate. Read my post explaining blockchain for more insight.
Facebook has indicated that they’re planning on setting up 100 nodes, and charging firms $10 million for the privilege of hosting one of these nodes. These nodes will easily sell out, and this would bring in $1 billion for the company. A Barclays analyst has suggested Facebook could see up to $19 billion in additional revenue until 2021 from its crypto project.
Facebook has been careening from scandal to scandal over the last couple of years. In my earlier studies of blockchain and distributed ledger technologies, one of the key elements holding this all together is “trust.” This is when only considering data and the blockchain…not bringing in the aspects of money and alt-coins.
Facebook’s behaviors throughout these scandals, and highlighted by recent questions about Zuckerberg’s leadership should raise considerable questions about the viability of this product.
Ahead of the announcement, it’s been reported Facebook will cede control of the bitcoin rival to “an independent foundation” in an effort to both deflect accusations of centralization and soothe financial regulators.
It will be interesting to see how this plays with financial regulators and global markets.
We would think that with the recent turbulence around the Facebook brand, and the other platforms they own…and recent calls for regulation…if this will ever come to fruition.
Even with all of this, users continue to use the platform and associated properties. As users see opportunities to earn Facebook’s digital tokens, will they jump for the opportunity to earn, convert, and accumulate these digital commodities. Judging by what we’ve seen from the Facebook shareholder news…yes. People will trade this, people will earn money. But, there is also the understanding that you’re playing by Zuckerberg’s rules.
Already there is news that the name GlobalCoin will not be used. Stay tuned.