Bary Silbert Looks at Facebook’s Crypto Coin as the Catalyst to Propel Digital Assets to Mass Adoption
- Details about Facebook’s GlobalCoin to be revealed next week
- Heavyweight players backing this project that doesn’t have “any innovation in it”
Facebook’s GlobalCoin project, known as Project Libra is all set to reveal its cryptocurrency next week but it is still a long way to go until it can be used. Sources having knowledge of Facebook’s operations attributed the delay to blockchain industry incumbents being reluctant to work on a project that doesn’t have the hallmarks of a true cryptocurrency.
The crypto payment platform apparently has the backing of some heavyweight players including Mastercard Inc., PayPal Holdings Inc, Visa Inc., and Uber Technologies.
This list of hackers could also include crypto trading platform Coinbase, venture capital firms Andreessen Horowitz and Union Square Ventures along with Spotify Technology.
“WHOA. Facebook cryptocurrency is also reportedly supported by: Andreessen Horowitz, Union Square Ventures, Thrive Capital, Lyft, eBay, Spotify, Coinbase, Kiva, Vodafone. Don’t bet against one of the most successful companies in the world,” commented Morgan Creek Digital’s Anthony Pompliano on Twitter.
Institutional Attention & Driving Efficiency in the Space
However, this might not be good news as some industry experts believe this could create a system with ample power that can drive anti-competitiveness while having limited accountability.
UNPOPULAR OPINION: People trust Facebook more than the major banks.
The “no one trusts Facebook” narrative is naive and inaccurate.
— Pomp 🌪 (@APompliano) June 14, 2019
Per the details that have emerged so far, this GlobalCoin, whose value will be pegged to the fiat currencies will be used to make payments on Facebook.
“There’s just not any innovation in it,” said Gabor Gurbacs, director of digital asset strategy at VanEck/MVIS. “It’s just Silicon Valley’s ongoing attempt to take bank profits from the financial services industry to Silicon Valley.”
Unlike popular and traditional cryptocurrencies like Bitcoin, Facebook’s crypto will be centralized.
I'm just gonna say it.
I think the "FacebookCoin" is an attempt by big tech, banks and credit card companies to lure people away from #Bitcoin into their "better, easier, crypto", which is nothing more than a fiat coin being masqueraded as crypto.
Millions will be fooled.
— Charlie Shrem (@CharlieShrem) June 14, 2019
However, according to Digital Currency Group’s Barry Silbert, it would be bullish for Bitcoin and digital currencies which he says will go down in history as “The Catalyst” in driving the mass adoption of digital assets.
The launch of Facebook's cryptocurrency will go down in history as THE catalyst that propelled digital assets (including bitcoin) to mass global consumer adoption. Will be remembered as just as important — and transformative — as the launch of the Netscape browser
— Barry Silbert (@barrysilbert) June 14, 2019
A similar sentiment is shared by Garrick Hileman, head of research at Blockchain.com who told Barrons,
“It may be the most important announcement this year and one of the most important developments in the history of cryptocurrencies. Anytime an organization the size of Facebook with billions of users comes out and says they’re going to be using blockchain and cryptocurrency, that’s a very significant validation of the technology.”
Reports indicate that the company has hired payment experts and also spoken with regulators. GlobalCoin in no way is a threat to the leading cryptocurrency but could compete against so-called stablecoin and according to some could be a “Ripple killer” as well.
The good thing about Facebook coming with its own currency is as Gurbacs puts it that the large institutions are paying attention that will eventually drive efficiency in the space and their skin in the game.