(BlockBar) RBC Capital Markets’ Mark Mahaney and Zachary Schwartzman said in a note that they believe that Facebook GlobalCoin would prove to be one of the most important initiatives in the history of the company to unlock new engagement and revenue streams. The two experts expect the currency to be used, across Facebook’s ecosystem that includes image-based social media platform Instagram and encrypted messaging service WhatsApp, for payments, commerce, applications, and gaming.
RBC is planning to offer an analysis of the paper, “to help investors analyze the underlying cryptoeconomics of the token.” The currency is backed by a number of global fiat currencies and is rumored to be a stablecoin. The currency has been in development for more than six months. Facebook allegedly will offer employees the option to take their salary in the new currency. But it has not been confirmed if the $514 billion worth company will offer incentive packages in GlobalCoin.
According to Caitlin Long of the Wyoming Blockchain Task Force, “More people will turn to bitcoin for one simple reason—bitcoin is scarce, while Facebook’s cryptocurrency is not. People will migrate over time to the most honest ledger for storing their hard-earned wealth—and that’s not fiat currencies or derivatives thereof, including Facebook’s cryptocurrency.”
Crypto-notable Charlie Shrem said that he thinks the “FacebookCoin” is an attempt by big tech, banks and credit card companies to lure people away from Bitcoin into “better, easier, crypto”, which is nothing more than a fiat coin being masqueraded as crypto. Millions will be fooled. It clearly indicates that not everyone is excited about the product.
There is a possibility that a lobbyist from Standard Chartered will join the Facebook crypto-unit staff in September to assist with political and regulatory scrutiny in the EU. It is worth noting that Mastercard, PayPal, Visa, and Uber are all backing GlobalCoin to the tune of $10 million dollars. To assist development Facebook has also acquired smart contracts producer known as Chainspace. Facebook’s stock is up more than 35% this year. To be noted, RBC has an outperform rating on Facebook with a price target of $250 a share.
John Danie is a highly experienced marketing strategist and businessman in the blockchain industry who likes the pace of the development of cryptocurrency, especially in blockchain technology where it can move so fast. Being a fintech writer and crypto reporter with a fascination for tech and a passion for starting interesting conversations, he seeks to create authentic news stories in the industry.