Explosive Growth: Facebook Coin Could “Triple” Crypto Users

Changing Stable Coins: Bye Tether, hello Facebook and J.P. Morgan Coin

Facebook is of global importance. Even if only a small percentage of its users turn to crypto currencies, this would double, even triple, their global usage.

At the same time, the Facebook coin would make a large part of the world’s population familiar with cryptocurrencies. Bitcoin & Co. could also benefit from this pull:

It is a stepping stone […]. People can look around and invest in Bitcoin or Ether.

A look at the figures shows that Bogart could be right with his estimates.

“Dramatic catalyst” for the FinTech sector

In addition, according to Bogart, the Facebook coin could become a “dramatic catalyst” for the entire FinTech industry. Most of it has remained stuck on the sidelines until now and now has to follow suit in view of the crypto adaptation. The example of the major investors Fidelity, who had announced this week that they wanted to offer crypto trading to institutional investors, shows that this pressure is representative.

Facebook is now making the industry take action sooner rather than later.

Meanwhile, Facebook seems to continue to work diligently on the development of its supposed stable coin. After it became known that the company was currently recruiting partners in the institutional financial world and, among other things, had won MIT professor Christian Catalini for its purposes, the company announced a surprising decision this week. Despite the continuing smoldering Brexit, Facebook is reportedly planning to locate its headquarters for mobile payments in London. From here, the department will focus on India as the most important market for the Messenger WhatsApp. It is certain that the Facebook coin will play a role in this. There are also rumors, that Bitpanda will feature the new Facebook coin.

Discontinued model national currencies?

While German Facebook users pay in Euros, British in Pounds and American in US Dollars, in the future the majority of all payments will only be processed via a cryptocurrency, maybe a security token. The creation of a global private-sector crypto-currency union is making currency management increasingly obsolete. Platforms and companies with a stable coin can also integrate additional functions into their token economy that are actually known from utility tokens. For example, those who pay with the platform’s own stable coin can benefit from better conditions. For example, J.P. Morgan can automatically pass on the transaction cost savings to its business customers so that both sides benefit.

For the old Stable Coin generation, it will be narrow

However, this development also shows that it will be difficult for the first asset-backed generation of stable coins, ergo tether or pax, to assert themselves in the long term. While they offer practically no advantages in terms of decentralization, they are clearly inferior to players such as Facebook or J.P. Morgan. The majority of investors and traders will trust a regulated, established and much higher capitalized company such as Facebook or J.P. Morgan to provide the coverage and value stability of a stable coin rather than a scandal crypto start-up like Tether.

The niches and cooperations are what count

The situation is different for stable coins, which are not based on centrally managed coverage of deposits. Decentralized stable coin concepts such as the MakerDAO certainly have a chance of finding their niche in the crypto ecosystem in the future. Strategic partnerships with renowned service providers can also help to find use cases for stable coins. This is no longer just a matter of trading functions for active stockbrokers.

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The Cryptocurrency Consultant

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Bitcoin, Blockchain and Cryptocurrency Educator. Passionate Writer. My talent is to easily explain complicated contexts.

The Startup

Medium's largest active publication, followed by +479K people. Follow to join our community.