Facebook Coin Update: Just around the Corner

Facebook Coin Update: Just around the Corner

According to CNBC, Facebook plan on revealing more information about their ‘GlobalCoin’ later this month of June

The coin, rumored to be dubbed “GlobalCoin”, is allegedly aimed to allow users to process transactions via the social media platform, and will also be offered to Facebook employees who want to get paid in crypto.
It was also reported that Facebook is planning to introduce physical portals such that users can purchase the cryptocurrency, and is inviting external parties to participate in the network to act as “nodes” for a fee as much as $10 million each.
Here is a summary of what’s to be expected, all the leaks / rumours that we have to date:
  • Facebook’s Cryptocurrency is likely going to be a stablecoin, meaning there’s no point speculating in the price of it. It will however be a more reliable version of USDT, which many people trust to back their crypto to the dollar. One of the questions I have is what exactly will Facebook’s stablecoin be backed with? Dollar equivalents or will they fractionally reserve their dollars and invest in other companies (including their own) with the capital? Very interested to see how they regulate their stablecoin.

As a side note, many people (including me) are just assuming it is a stablecoin, if it is not, then I will be most likely investing a fair amount into this project (subject to dd of course)

  • Facebook are allowing their employees to receive part salary in their coin – which is why I believe it may not be USD backed (why would you choose to receive an already USD salary with a USD backed token?).
  • Facebook are taking measures to ensure the token is not 100% centralised, however to operate a node this will set you back almost 10M USD. My question is, what is the incentive for doing it? Transaction fees? if so, will it beat the standard 3% that banks charge?
  • Facebook plan to release ATM’s where users can withdraw this currency.

Are Facebook about to become the new world bank? Very interesting to see this shift in traditional finance to blockchain.

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