(BlockBar) High expectations have been expressed for Facebook’s “globalcoin crypto project,” which has not been officially announced but which has received extensive coverage and attention for its progress and the company’s actions.There has been a lot of talk about Facebook’s moves, RBC Capital Markets’ Mark Mahaney and Zachary Schwartzman said in a report on Thursday. ” We believe this may prove to be one of the most important initiatives in the history of the company to unlock new engagement and revenue streams.” Two experts expected globalcoin to be used as payment, business, applications, and games, which would cover the entire ecosystem of Facebook, including social media platform Instagram and encrypted messaging service WhatsApp
Mahaney and Schwartzman also repeated previously reported expectations that Facebook would release its white paper on June 18, following Satoshi’s footsteps by explaining the basic deal that will support the Libra project, an internal code for the project. RBC said it plans to analyze the report “to help investors analyze the underlying cryptoeconomics of the token.”
Facebook will offer employees the option to pay in newly developed currencies. It has not yet been determined whether the $514 billion company will offer incentive packages for GlobalCoin. ” 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” wrote Caitlin Long of the Wyoming Blockchain Task Force.
Encryption celebrity Charlie Shrem said: I just wanted to say this. I think FacebookCoin is just a way for tech giants, Banks, and credit card companies to try to lure people away from bitcoin in favor of a “better, easier to use cryptocurrency,” which is actually legal tender masquerading as cryptocurrency.
Facebook plans to issue a stable currency linked to a basket of fiat currencies. But that decision is unknown, and Facebook needs another layer of trust in corporate entities to design currency agreements. At the same time, GlobalCoin lacks of decentralization. There is no decentralized node network and no hash rate competition to ensure the security and integrity of the whole blockchain.
According to the British “Financial Times” reported on June 14, Facebook has hired Ed Bowles，the head of Standard Chartered Bank public affairs. He is expected to introduce restrict regulations on crypto assets and other financial services to 2.4 billion users in Europe. What’s more, Bowles will join the company in September and he will become the head of public policy in London.
Visa, MasterCard, PayPal and Uber will all invest $10 million in GlobalCoin. This part of the money will be used as an investment or mortgage asset. According to the former report of New York Times, Facebook hopes to receive from venture capital firms of anther $1 billion.
On the one hand, Facebook has raised a considerable amount of money, and the company has also acquired smart contract manufacturer Chainspace to assist in development.
What do you think about Facebook’s GlobalCoin program?
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