Facebook Cryptocurrency GlobalCoin Attracting Big-Name Partners
Facebook’s plan is to secure the network for its GlobalCoin by partnering with companies and selling the right to participate for $10 million.
The upcoming Facebook cryptocurrency, GlobalCoin, will get support from big-name companies willing to secure the network, the Wall Street Journal reported. Among the candidates listed to secure the network are Visa Inc., Mastercard Inc., PayPal Holdings Inc., and Uber Technologies Inc., a curious list that went counter to the ideas of the crypto community.
The reason for some of the negativity is the image of some of the companies, which stand for centralization, censorship, and an anti-privacy stance.
The Facebook digital currency will be fully compliant, meaning anonymity will be out of the question. Experts believe Facebook will create a product similar to a fintech payment app, with limitations on amounts sent and with full transparency.
But Facebook’s move blurs the line between cryptocurrencies and fintech. In theory, the unrolling of Project Libra and GlobalCoin may bring a new payment alternative to more than two billion Facebook users.
The new coin is also expected to have a fixed value pegged to the US dollar, for more intuitive spending. The white paper for Facebook’s Global Coin will appear on June 18, reported TechCrunch, to reveal additional details on the network’s structure. The suggested date for the coin’s launch is ahead in the future, possibly at the beginning of 2020.
The new token will be designed for use within Facebook Messenger and WhatsApp. Facebook will also reach out to merchants to accept the new asset. At the helm of the project is David Marcus, former president of PayPal. Facebook is currently open to hire additional blockchain experts for its new project.
The news of the upcoming Facebook coin arrives at a crossroads for the digital asset market. As coins are fighting for adoption, past problems are coming to haunt them. The in-chat token, KIN, turned out to trigger the US Securities and Exchange Commission, leading up to a lawsuit against Kik for selling unregistered securities. Merchant adoption and social media use for existing coins and tokens is also very limited.