Facebook is the latest company that is considering to launch itself in the cryptocurrency sector. After JP Morgan pioneered its own crypto tokens, Facebook is the latest tech giant that is truly focused on bringing more opportunities for everyone in the crypto sector.
Facebook Prepares Crypto Launch
Facebook is planning to go global and it’s as simple as that. The company has announced a token that it will aptly call GlobalCoin and that will serve to all 2.2 billion users of the platforms. The upside of using GlobalCoin, Facebook has explained, will be the development of a stable digital asset that can be traded safely & securely, without carrying unnecessary risk otherwise.
The BBC also ran a a piece in which it described a meeting between Bank of England Governor Mark Carney and the CEO of Facebook, Mark Zuckerberg. With this meeting, one thing is clear – Facebook is not launching for the short-term.
Instead, the company is preparing to spread its offer well beyond and focus on creating a genuine financial asset that runs on blockchain. If Facebook succeeds, it will be the first mainstream cryptocurrency to actually manage to break into the highly-contested debate of FIAT-vs-CRYPTO assets.
Facebook Comes from a Position of Power
Unlike other companies, Facebook is coming into cryptocurrencies into a position of power. In other words, the platform doesn’t have to convince people in its credibility. Facebook and Whatsapp have been around for a fair while now, and they have garnered the trust of billions.
Even though the platform has been caught red-handed, people are still actively using Facebook to stay informed. Mr. Zuckerberg hopes that he can extrapolate and do the same thing for the cryptocurrency that Facebook is preparing to launch.
You must be wondering – can GlobalCoin go truly global? Well, there are quite a few ideas about this. If Facebook manages to find a common language with the world’s leading financial institutions, then yes – why wouldn’t it?
The meeting between Mr. Zuckerberg and M. Carney is just that. Mr. Carney has been in the seat of BoE for a long, long while now, and he has a unique insight into how things should be run. If he can help Mr. Zuckerberg to direct the new cryptocurrency correctly, then all will be well.
The Company Prepares in Advance
When Facebook followed suite with Google and banned all cryptocurrency and blockchain ads – or at least those that were directly deemed to do with illegal activities. Now, Facebook, didn’t block any of the cryptocurrency ads because it didn’t want any of the competition. It did so because it had to protect people from increasingly falling victims to fraudulent crypto schemes.
So how does Facebook intend to fight the crypto frauds itself? It’s simple. Create a crypto currency, i.e. GlobalCoin which will help you purchase things online without actually worrying about the currency losing all its value.
Facebook can hardly promise anyone that the cryptocurrency will stay stable. This is mostly to do with market forces. But what if Facebook can indeed find a way to ensure that we can have a crypto asset that operates much like FIT currency, at least hen it comes to its value.
This might yet be possible, and if Carney manages to come up with a working solution for Facebook, then all is definitely not lost and we will expect a future in which cryptocurrencies such as GlobalCoin will be the standard way of running and settling financial transactions.
There are many benefits to having all financial transacitons done over cryptocurrencies as well. We can think at least of a few and they include the fact that you will slash all operational costs to a 0%. In other words, you can transfer $100,000 and pay off nothing or a one-time fee, such as $20. The same applies for millions and you will again have to pay a close-to-zero overall fee. This is perfect for anyone who wants to invest, but it would also allow companies to do business and transfer capital back home rather then having to keep it abroad to avoid hefty fees.
As personal business owners, we understand that keeping your assets in their gross state is somewhat better. Small business owners sometimes avoid transferring money to their private accounts to avoid paying dividends. However, with cryptocurrencies, you can really slash all costs associate with transfers and pay your dividends with those money – or at least part of them.
This means that you will be able to transfer more money and never have to worry about picking up some errant fees.
JP Morgan – A Lesson to Be Learnt
The power of cryptocurrencies is visible with a plain eye. You can really turn your company’s fortunes around if you have access to quick ways of transferring your funds. This is precisely what Facebook wants to do.
JP Morgan has created its own specific Coin service which will have the value of its FIAT counterpart funds. This way, companies needn’t worry about missing out on anything when it comes to oversea assets. Transferring assets via FIAT currencies is not really an option, though, because when all these things are considered, the transfers will cost you a small fortune, leading to up to 25% loss of capital.
For instance, the United States can truly benefit from transferring funds back to the US, but this is impossibly expensive and while businesses cannot use the money back home, they can do one thing well enough – they can diversify and expand their expertise abroad, which is quite important overall.
The world is quickly changing and there is a clear necessity for more innovative approaches when it comes to moving large sums of money around. Leaving things to chance is simply not an option any more and this is precisely what JP Morgan, the Bank of England, Facebook and many others have realised and work actively upon.
Want to be part of that change? Well, you will have to come up with something more innovative than Facebook themselves. On the one hand, having more power concentrated in the hands of Facebook is not ideal, but then again it might work out well in the end.