Facebook’s Aging Demographics Could Prove to be a Challenge For Company’s New Crypto Offering
Facebook currently owns the largest social media platform in the world. This is pretty much enough in order to have a successful launch for the long-awaited Facebook Coin, right? Well, not so much, according to a new piece of research made by Diar.
The new currency created by Facebook is set to disrupt the global banking networks and to earn a lot of money for Facebook while doing so. By removing all the financial barriers and making some of the products advertised on the company cheaper, the idea is to take over the world, basically.
However, the new report from Diar poses an interesting question which should be taken into account in order to discover if Facebook has big chances or not. The fact is that the users of Facebook are continuously older as time passes. New generations are not as prone as the old ones to keep using the social media network.
This demographic could prove to be the largest challenge for Facebook so far, especially as the company is struggling to widen its reach. The main problem happens because older people are not so prone to know about cryptocurrencies and to be willing to use them as young ones.
According to the report, the most probable strategy that Facebook will use in its expansion is to target countries which do not have a very strong financial structure. This way, they will offer their token to people as an alternative in order to make payments online.
It is important to notice, too, that the so-called Facebook Coin (also known as Project Libra), will possibly be used on WhatsApp and Instagram, too, which changes the whole scenario, especially when you consider that the userbase of Instagram is considerably younger than Facebook’s.
Facebook Is Already Starting Partnerships To Launch New Token
Another important fact that should be taken into account is that Facebook is already moving major partnerships forward. The company is said to be currently dealing with the Western Union, which will possibly help Facebook in the future. Other rumors, however, affirm that the company is only consulting as part of its research to provide services for the unbanked around the world.
Facebook also met with representants of both Visa and Mastercard, the two largest payment processors in the world right now. Even the venture capitalist investor Tim Draper was consulted by the company. He is known as a major Bitcoin bull and a crypto enthusiast.
Last week, it was also reported that the giant of social media was talking with members from both Coinbase and Gemini, two prominent crypto exchanges in the U. S. market. According to anonymous sources cited by the Financial Times, Facebook has negotiated with the companies in order to ensure that its stablecoin has a peg to the value of the USD.