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Facebook Is Getting Closer to Launching Its Own Cryptocurrency, but Why

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The rumors of Facebook own cryptocurrency are nothing new in the vast world of cryptocurrencies. They have been around for over a year now, with some insider reports confirming them for months, now. However, recently, another wave of confirmation has emerged, and these ones are referring to the coin as GlobalCoin.

There was already a number of events that seem to confirm the coin’s existence even further, such as the Facebook CEO, Mark Zuckerberg, meeting with the US Treasury and contacting the Bank of England in order to seek regulatory guidance and confirmation. Something is definitely coming, but one question that many are still asking is: Why? Why is Facebook developing its own cryptocurrency?

Facebook’s GlobalCoin

According to reports from those who seem to be familiar with the matter, GlobalCoin is expected to arrive in Q1 2020. In other words, the social media giant is ready to enter the final phase of designing the coin and start conducting various tests.

Considering Facebook’s size and user base, the coin will truly be a global one, and while this is nothing special when it comes to cryptos — they are borderless, after all — this will be the first coin with such a massive exposure. It will also be pegged to a number of different fiat currencies, such as the EUR and USD, and likely half a dozen others.

With over two billion people using Facebook, and even more using its WhatsApp and Instagram, this coin will help connect these platforms further, and also make it easy for people to send money to one another through them. It will also be useful within the platforms, as various purchasable applications will accept it.

In other words, one of the reasons why Facebook is developing its new coin is its potential to help the ecosystem grow and evolve. It will also help Facebook establish its dominance even further.

Facebook’s history with cryptocurrencies

This may surprise some people, but this is not the first time Facebook has been trying to develop its own cryptocurrency. About a decade ago, the company was trying to create Facebook Credits, which would act in pretty much the same way. However, that was way too early for digital currencies to emerge, and it was not profitable at all. Nobody was interested, and Facebook eventually dropped the project.

Then, Bitcoin emerged, and while it required nearly a decade to go big, it eventually happened, as we all know by now. Facebook saw this as an opportunity to get back to the old project, but also change it and adapt it to the current crypto space. Interestingly enough, Facebook also introduced a major ban on everything crypto-related last year, which many saw as a strange move.

However, it was assumed that the platform does not believe in crypto and that it wants to protect its users from fake ICO ads and similar dangers. Then, rumors of Facebook Coin emerged, and people got even more confused, as Facebook was, apparently, against the idea of crypto. Eventually, the ban on crypto advertising got lifted, and the company is now edging towards launching its own coin.

Concerns and benefits

Of course, there are still concerns regarding the new crypto, as many assume that Facebook will use the system to start monitoring its users even more closely. It already has issues with how it treats customer data, and now it seems to want more — to gain insight into users’ payment habits. However, to do so, Facebook did not have to go crypto. It could have easily launched a PayPal-like service that would work with traditional currencies.

The decision to join the crypto space shows that Facebook does believe in cryptocurrencies and that it decided to be among its pioneers. Further, many businesses and even some banks announced their own stablecoins, but Facebook’s reach is far greater, and it stands reasonable chance to beat them simply by adding its own digital currency and collect all of their potential customers.

It should be noted that the privacy issues remain, and a lot of details regarding the coin are still unclear. But, the launch of a GlobalCoin is generally a good thing, as it will expose billions of people to cryptos. If it ends up being good — great. If not, those billions of people will easily find their way towards Bitcoin. In other words, no matter how good or bad GlobalCoin ends up being — the crypto space will benefit from it. And, who knows, maybe Facebook ends up being responsible for mass adoption. With that in mind, it is not surprising that many see this as the most important development in the history of modern finances.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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Altcoins

ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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Altcoins

SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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