(BlockBar) Some of the world’s largest companies are heading towards crypto industry. The giants of the technology world also continue to foray into the cryptocurrency space. Microsoft, IBM, Samsung, and Google have made a good progress with their blockchain-related products. Now, Facebook is all set to make the biggest splash but with its own digital asset.
The details of Facebook’s cryptocurrency are starting to work out. The cryptocurrency launched by facebook will be named “Globalcoin”, with its issuance being completed by a subsidiary named “Libra” that is based in the historically crypto-friendly Switzerland. The coin will be available through Whatsapp. It will be a payments mechanism and a medium of exchange for the social media ecosystem.
The announcement of the launch of the cryptocurrency got a mixed review. The former Wall Street hotshot, now a well-known cryptocurrency investor Mike Novogratz , said “Facebook is wildly important for the ecosystem”, adding that this tacit endorsement of the technology behind Bitcoin is resounding. He even states that contrary to popular belief, Globalcoin will add value to the non-centralized cryptocurrency ecosystem, not subtract.
Anthony “Pomp” Pompliano, a Facebook growth team member-turned-crypto venture capitalist and Bitcoin evangelist, also emphasised on the importance of Facebook in blockchain.
He said: If the technology company could successfully build the product and drive adoption, they will have a chance to transition from a social network to one of the largest financial services companies in the world. This move would allow them to take a small percentage on each transaction and reduce the dependency on their advertising-based model.
Though many are sure that the launch of Globalcoin will only validate Bitcoin and its kind, giving the ways of both the skills and heart to delve into cryptocurrency. But some are still skeptical of the Facebook-backed asset and don’t openly approve of it.
Frank Chaparro of The Block bewares his followers that Zuckerberg and Facebook hasn’t had much of a regard for the privacy of his users, even when Facebook was an arising firm. Others too agreed this sentiment. It is worth noting that the product is not only going to be centralized most likely and will be susceptible to censorship, government oversight, amongst other concerns that don’t pertain to Bitcoin.