Facebook’s Mark Zuckerberg And Gemini’s Winklevoss Twins Socialize About Cryptocurrencies
The Dawn Of The Global Coin? Facebook's Mark Zuckerburg Consults With Rivals Winklevoss Twins To Help Push Its Cryptocurrency
TL;DR – Will the emergence of Facebook's own take on cryptocurrency known as GlobalCoin represent the great catalyst for mass adoption for crypto? It does have all the potential to propel its usage from just 30 million to well over 2.4 Billion. It is very possible, but there are still some issues outstanding.
Facebook – Building The Killer App
If there is one thing that is pretty profound about Facebook and its relationship with Cryptocurrency over 2018, it's that it has been overtly hostile towards it in spite of developing its own projects using it.
The best example of this that we have is its push to ban all ads related to cryptocurrencies, Initial Coin Offerings, and Bitcoin back in January 2018. So was there a protectionism going on with Facebook's aggressive anti-crypto approach? The fact that people were met with stone silence speaks volumes.
It's only now that we start to piece together the previous hints that had come out. With some kind of decentralized ‘coin' that would be coming to the platform, and even after the announcement of its own digital currency network solution, known as Libra, it is looking very much like Facebook is going ahead with ‘GlobalCoin.'
The social media platform finally went public this week with the announcement that its own decentralized currency will officially be launching for a number of pre-selected countries by the beginning of next year.
Making use of its own cryptocurrency will allegedly allow people across the platform to use the token to conduct transactions within the platform in a streamlined, cost-effective way, while also allowing users to do so without requiring a bank account – which is would provide a means of saving and completing transactions for millions in unbanked regions.
With the application of a payments solution like GlobalCoin, Facebook's developers are taking aim at the payments solution world, disrupting it with its own answer to a failing, inefficient, and highly expensive banking institution.
Facebook is already renowned for its titanic user base, and that is not used lightly; with more than 2.2 billion people using it across the world – will the implementation of GlobalCoin spell the beginning of mass adoption for cryptocurrency?
Facebook CEO – Mark Zuckerberg Holds Talks With Rival Winklevoss Twins over Crypto
According to the financial news site – The Financial Times – Facebook is pulling out some additional stops in order to ensure that GlobalCoin will look to behave differently from other cryptocurrencies. Unlike other digital currencies out there, GlobalCoin aims to provide a highly regulated coin and will require users to adhere to its extensive amount of data requirements in order for it to pass anti-money laundering and KYC checks.
This is not going to stop the coin from being implemented however, and these aren't major obstacles for Zuckerberg. He has been looking for answers by setting up meetings with financial experts to overcome the challenges, as we've seen from his talks held with officials with the United States Treasury as well as the Governor of the Bank of England, Mark Carney.
Facebook and its coin are also taking into consideration money transfer and remittance services like Western Union in order to allow users without bank accounts to send money easily and internationally.
Pulling out all the stops is very much the case, as the Financial Times reports that Zuckerberg has even consulted with his formerly bitter rivals, the minds behind Gemini – Tyler and Cameron Winklevoss.
Gemini has garnered a highly reputable and well-regulated cryptocurrency exchange within the United States, so it stands to reason that Zuckerberg, in spite of having some serious animosity towards the Winklevoss', would consult with an exchange already regulated enough to operate in the US.
Facebook And GlobalCoin – Worth Giving More Of Your Private Data?
There is no shortage preventing Facebook from delving into cryptocurrency wholesale, and pushing it out to a mass audience. It has plenty in the way of funds, reach and the means with which to successfully launch it.
What it does have a shortage of, however, is consumer trust. Facebook has done a lot to alienate its user base and destroy trust that was cultivated over a number of years. Accruing a large amount of data, while also unscrupulously selling it on to various advertisers.
It's with this in mind that we find the biggest challenge standing between GlobalCoin and enjoying mass adoption. And that is whether or nor users would be willing to trust Facebook with handing over an increased amount of their data.
We see even more of this lack of trust from the markets that Facebook is steadily expanding into. One of these being the Indian market, which is a prime target for the company to enter. The country, however, has a less than a friendly attitude towards anything crypto related.
It remains to be seen whether Zuckerberg and Facebook will prove successful in winning over this skeptical and untrusting user base or win over the approval of local regulators across the world.
This Cryptocurrency is a far cry from the anonymous peer to peer payments solution that the likes of Monero and Bitcoin profess to be. Regardless of its success, it still has the potential to be a killer payments solution with a users base of billions to make use of it.