Facebook’s Global Coin Faces Harsh Criticism From the Crypto Community, But Which Way to Sway?
Facebook has just announced that it will be launching a digital currency called GlobalCoin. However, the crypto community has already attacked and criticized this project, specifically, Bloomberg, one of the main financial media outlets around the world.
Bloomberg Columnist Rejects Facebook’s Digital Currency
The Bloomberg columnist Lionel Laurent has written an op-ed about Facebook and the decision that the social media giant took to launch its own cryptocurrency. At the moment, Facebook is one of the most valuable firms around the world and the firm controls other applications such as Instagram and Whatsapp, which have over a billion monthly users.
Facebook has recently announced that it is finalizing its plans to launch a digital asset next year. The intention is to set up a digital payments system in over a dozen countries during the first quarter of 2020. The firm has already talked with different regulatory agencies, including the Bank of England and its governor Mark Carney and it has also been discussing different issues with other firms such as Western Union.
The goal is to join forces with a wide range of banks and brokers that will enable users to exchange their fiat currency for digital coins. Additionally, users could eventually be able to pay for goods and services with it.
The article that Mr. Laurent wrote reads as follows:
“This is the kind of move that would turn Facebook from an incredibly powerful centralized network tracking its users’ behavior for the benefit of advertisers into one that also knows where and how they spend their money.”
This is clearly one of the main critics that the crypto community made over the last few months of reports and speculation about Facebook’s plans for this digital asset. At the moment, Facebook gathers data from users that is used by companies around the world in order to create marketing campaigns, sell products or attract users to specific events, among other things.
However, firms didn’t have information about the financial movements that users could have in their private life. With a digital coin that would work to make payments faster, easier and cheaper, firms will have a new set of data that could be used to target users for future marketing campaigns.
Although the digital currency and blockchain project is already being developed, it is not clear whether regulatory agencies around the world will be giving an official approval. The European Union (EU) has been in a legal battle over how Facebook deals with information from users.
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