FACEBOOK COIN – I’m Gradually Growing Up
What’s old is new again in the hands of today’s barons of digital foundation. A wide variety of peoples are using Facebook all over the world. It helps you connect and share with the people in your life. Now, the company has planned to launch a digital coin through Facebook. Get ready for Facebook Coin.
Social media giant Facebook is working to enter the cryptocurrency era targeting its 2.5 billion users. It is planning to set up a digital cash system in about a dozen nations by the first quarter of 2020. The social media giant wants to inaugurate testing its crypto-currency, which has been referred to inside as GlobalCoin, by the end of this year.
Virtual currencies can be utilized to pay for things in the real world, such as a motel room, food or even a residence. Digital tokens are handled in online wallets and can be transferred anonymously between users.
Cryptocurrencies work on blockchain technology, it is a record of blocks of information, such as sales or agreements, that are saved across a network of computers. This information is cached chronologically, can be seen by a community of users, and is not normally managed by a central authority such as a bank or a government.
The concept was created to ensure safety and anonymity for users, by preventing tampering or hijacking of the system. (1)
The accurate name of the new cryptocurrency is yet to be known. But some reliable sources termed the project as “Libra” and the coin as “FB coin”, and “Zuke Bucks”. Whatever it is, Facebook is set to leverage the potential of Blockchain technology.
The whole project may cost over one billion dollars, but when we consider about one –fourth of the world’s population, it is worth spending. Should the project benefit, cryptocurrency will start the mainstream payment systems.
Facebook users will not just be able to make in-house payments but on some other e-commerce companies as well. With the initiation of own currency, Facebook is likely to promote its business.
For instance, people will be tempted to use FB coin with Facebook accounts in checkout choice as they shop. On the other hand, there might be a chance to earn coins in trade for watching ads. The final result will be a constant commitment of people with Facebook in one way or another.
Facebook’s journey towards a new digital currency is previously on the surface. One of its superior engineers Evan Cheng has been promoted as the director of engineering at Blockchain division. Messenger chief David Marcus will oversee the activity of a team assigned to exploring blockchain technology and its likely use in Facebook. (2)
Hopes Of Receiving a Gold Coin:
Facebook wants to generate a digital currency that gives affordable and reliable ways of making payments, despite whether users have a bank account. The social networking site, which owns WhatsApp and Instagram, is expecting to disrupt existing networks by cutting down financial barriers, struggling with banks and reducing consumer costs.
The project will detect it join forces with banks and brokers that will empower people to change dollars and other international money into its digital coins.
A small group of co-founders is expected to propel the Swiss-based organization in the coming weeks. Facebook is also reportedly in discussions with a number of online merchants to accept the currency as payment in results for lower transaction fees. (3)
The new coin would leverage the built-in links of WhatsApp’s more than 1.5 billion users and possibly billions more if the coin come to Instagram or Facebook itself. That simply would make it an immediate competitor to Venmo (and its owner, PayPal), and to China’s WeChat Pay, which is trying to make inroads globally, including in the US.
Neither of those companies, however, practices a blockchain to send money, or even does its own coin; WeChat users in China pay in yuan, just as American Venmo users pay in US dollars. Facebook’s clearest success, in using a coin backed by multiple currencies, would be to enable users to send payments across borders economically.
In December, Bloomberg stated that the coin would initially be tested with WhatsApp users in India, where the need for cross-border payments is strong. (4)
The social media giant has always been craving for a better stock price, so adding crypto to its floor might serve the purpose very well. But it is worth quoting the context in which the crypto project has been initiated.
Facebook faced huge criticism in the last year for its privacy practices, especially when the company’s privacy policies went below investigation by the US Federal Trade Commission following a week of scandals about leakage of personal data of tens of millions of users. After that, the company announced that it was prioritizing privacy. (5)
Nevertheless, Facebook has been continually trying to find new ways to settle centrally to user’s lives. Currently, social media is recognized as an entertainment and information channel. The cryptocurrency project is likely to gain the platform financially important to the users as well.
Today the social network is growing more competitive particularly when it gets to video streaming and virtual reality. But it is obvious that the company has made a strong stance for a digital payment system.
Facebook’s copyright of a virtual currency reflects the fact. Off the record, it is being discovered that Facebook’s blockchain group is serving for a foundation from which the company might target a variety of possible opportunities. (6)
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