Facebook GlobalCoin Stablecoin Could Hurt Ripple, Cause Altcoin Apocalypse But Help Bitcoin
- Social media giant Facebook is set to introduce its own stablecoin, called GlobalCoin, this month.
- Analysts have argued that this could potentially pose a threat to Ripple's suite of financial products, including XRP.
There have been increased interest multinationals, and business conglomerates are showing in stablecoins. Giants like Facebook and Samsung are getting onto the stablecoin market, integrating blockchain innovation into custom payment systems and digital wallets. The potential that such stable coins have to disrupt the global crypto and payment industry entirely is tremendous.
$1 Billion in Funding Sought By Facebook for Project Libra
It emerged last month that Facebook was looking for $1 billion in funding for Project Libra, its secretive cryptocurrency project. Libra took off a year ago when Facebook was looking to devise a way to transfer money between users of its WhatsApp service. But the social media giant’s ambitions have grown far bigger. It is now looking to create a digital payments system that will ensure cheap, fast, and secure money transfer between users.
CEO Mark Zuckerberg probably believes that he can disrupt bitcoin in particular and the cryptocurrency industry in general thanks to a massive user base, driven by properties such as WhatsApp and Instagram.
Facebook's GlobalCoin a Disaster for Ripple?
Facebook’s upcoming GlobalCoin might be a disaster for Ripple. When the JPM coin was launched, there was a lot of speculation that it was out for Ripple’s jugular. The very same thing has been said about the recent build of stablecoin’s in the market, including Facebook’s GlobalCoin. Some pundits claim that these would inevitably be
Even Max Keiser, the avid supporter of Bitcoin has these views. He thinks that not only Ripple but most altcoins would be rendered useless. He says:
“The $FB global stable coin… FaceCoin obviates need for hundreds of alt-cons including XRP. The alt-coin apocalypse is nigh.”
All other stablecoins seem to be proprietary assets for in house use, which implies that more and more business will keep building stablecoins for their own use. Consequently, the result of this exercise will be a deep fragmentation of the crypto market that mirrors today’s financial services industry.
Even though XRP has been criticized to be too centralized, Facebook’s GlobalCoin will be under the control of the social media company. Facebook has been disastrous for the privacy of people, we can expect the same with GlobalCoin. GlobalCoin will throw anonymity out of the window.