Looking into the Polarity of Facebook Entering the Cryptocurrency Space: Intentions Become Talking Point
There have been several reports regarding Facebook trying to launch its own virtual currency to the market. Apparently, it could be used to help the remittances market in India and to be integrated with WhatsApp.
However, there are some concerns related to this digital asset that could eventually be released by the social media giant. Facebook has been involved in different scandals related to the data that it stores from users and what it does with this data.
The Reddit user ContentExtremist released a post in which he said that Facebook coin is not a real cryptocurrency, but instead, “another data grab.” Some other users gave their opinion and most of them seemed to believe that the digital asset that Facebook could be developing is going to be centralized and acquire data from individuals using it.
The main intention is to integrate it into WhatsApp, a popular messaging application in different countries. The coin is also going to be pegged to the USD dollar or other fiat currencies to provide stability and be used to process transactions on the Indian market. In the future, it may be possible to see this digital asset operating in other countries as well.
David Marcus is the team leader behind the Facebook Coin (FC) – which has not yet been officially announced. Mr. Marcus used to work for PayPal. Facebook could also be thinking about integrating the digital asset with other applications such as Messenger, Instagram or Facebook. This would allow all its user base to exchange these coins and use them.
There is another company that is trying to release its own cryptocurrency to the market. Telegram, which is a competitor to WhatsApp and Messenger, has also been working on its own cryptocurrency called GRAM and that will be used in a blockchain network called TON – Telegram Open Network.
In order to start developing this network and cryptocurrency, Telegram held an Initial Coin Offering (ICO) in 2018 and gathered close to $2 billion.
There have also been some reports in which Facebook could be talking with digital currency exchanges to list the virtual currency. Nevertheless, if this is a stablecoin, its value would hardly fluctuate, making it less interesting for investors.
In order to use this virtual currency, users would have to provide their private information for the coin to be compliant with international regulations. Users will also have to provide their ID number or passport data if they want to purchase the coin.
What is Facebook going to do with the data that it collects? This is one of the main questions that the crypto community is currently asking. Clearly, Facebook is going to have larger information from users, including where they purchase goods, which individuals have financial contacts with each other and which is the sum of money they are able to handle.
Individuals are searching for privacy and decentralization in the crypto space. Facebook does not seem to be delivering this to users. With Facebook Coin things might remain the same or become even worse for users’ privacy and data.