Meet The Greatest Threat To The Global Banking Industry … (Facebook) GlobalCoin

Facebook will launch GlobalCoin in 2020 in a number of countries around the world. It’s all part of their move away from the reliance on social media, and is likely to make Facebook the largest clearing bank in the world.

The Central Bank of Facebook

Okay. Let’s create a new bank. “But”, you say, “You don’t have any customers, and it’ll be too costly to get them!”, “Well, let’s say I have the potential to attract 2.7 billion customers, would that work?”, “Yes, of course!”. “But, how would you get trust?”, “Well, I issue receipts for IOUs that you bank will pay, in whichever bank and/or currency that you want!”. “But, how can I trust that they will pay it?”, “I will put the money away somewhere, so you can get it back, but you can also transfer the IOU to someone else, if you want”, “Okay. Isn’t that just what we do just now with money?”, “Yes!”.

And so it is Facebook that is looking to use its captive base of 2.7 billion users — on Messenger, WhatsApp and Instagram — to launch its own cryptocurrency and become the Central Bank of Facebook. If successful, it could become the largest clearing bank in the world. Facebook, itself, sees competitors such as Telegram rising as a threat to its instant messenger platforms, and needs ways to innovate…