It has not been up to an hour since the news came out about Facebook’s yet to be launched virtual currency. Its name is FaceCoin.
As at the closing quarter of 2018, Facebook had started recruiting Blockchain linked employees for a discrete project. Since then, there have been so many ongoing rumors.
Recently, an investigative journalist from the prominent New York Times reported the news that Facebook; the social media giant is creating a stable coin.
This is a virtual currency that has a fixed value to counter any existing fiat currency such as dollars, euros, etc. So, it is evident that FaceCoin will be created to fight against the merged worth of fiat currencies.
Additionally, though not a surprise, FaceCoin will actually not go on the privacy route like the majority of the digital currencies we know. It would even straight up connect to a user’s Facebook account.
Nonetheless, every single thing is still under speculations, and some media outlets claim it is all nothing but another hype.
An Indian English language publisher also asked the big question in an article if the FaceCoin project won’t be yet another over exaggerated digital currency project.
A Reduced User Base
In addition to all these happenings, the United States Facebook user base reduced by a whopping fifteen million. Those that left were roughly in the age bracket of about twelve to thirty-four-year-olds.
Coincidentally, this is the age group that should likely be accepting and utilizing virtual currencies. Moreover, FaceCoin might just be a critical attempt to appeal to these users.
One other unanswered question is the usage of FaceCoin. This pertains to the fact that as a stable coin, it will not act as an investment tool or a store of worth like Bitcoin.
It will simply be a method of Facebook making profits through trading an excited Cryptocurrency token that its users will transfer to each other using the diverse messaging forums.
Asides from its marketplace, Facebook does not have any other means through which users can purchase anything on the platform. However, most of the marketplace users may likely want to keep on utilizing their regular payment methods.
Concerns Of Security
Due to Facebook’s current failures in protecting the data and privacy of its users plus the increased profile Cambridge Analytica issue, it is most likely clear that lots of its users will be doubtful concerning giving out their monetary information to the company.
Nevertheless, even with the deficiency in reason or rhyme, the big questio is; why will a social media platform like Facebook want to create their very own digital cryptocurrency?
Some people have the belief that it will pump in millions if not billions into the virtual currency industry. Barclay’s analyst; Ross Sandler mentioned that the company would likely make a whopping sum of $19 billion from this current project.
Changpeng Zhao; CEO of Binance has given his take on the issue. He claims that FaceCoin will be ideal for a bigger Cryptocurrency acceptance.
To Wrap It Up
Meanwhile, no matter what the outcome may be, Facebook currently feels like an old platform inside the Blockchain sphere. Plus, this recent attempt to get into virtual currency is more like a middle-aged man suddenly deciding to purchase a Bugatti.