Facebook Coin — Cryptocurrency Market Win or NWO Nightmare?

• Facebook has confirmed that it will be releasing its own cryptocurrency and crypto payments system in Q1 2020
• Instead of Facebook Coin, Facebook has named its new cryptocurrency ‘Global Coin’
• Prominent figures in the crypto space like Cardano’s Charles Hoskinson, are already warning against a future Facebook monopoly on digital currency

Facebook’s Hotly Anticipated Global Coin has People Divided

For years, cryptocurrency market commentators have speculated that a so-called ‘Facebook Coin’ might be on the horizon. Namely, a cryptocurrency created by Facebook, to monetize user content and facilitate peer to peer user payments. The commentator speculations are now true.

What is Global Coin?

On May 24 2019 Facebook announced it’s foray into the cryptocurrency space. However, the cryptocurrency due to launch in 2020 won’t be called Facebook Coin. Instead, Facebook has settled for now on the name ‘Global Coin.’

How Global Coin will work remains a mystery. However, we do know that Facebook is developing Global Coin in a way which meets regulatory approval, and which will see payments launched on Instagram, WhatsApp, and Facebook Messenger.

• Global Coin is being developed by front running cryptocurrency economists and developers like MIT’s Christian Catalini
• Leading financial industry insiders have reportedly met with Facebook, like Bank of England Governor Mark Carney
• Facebook is encouraging retailers to offer discounts on products listed on Facebook when users pay using Global Coin, to give users an incentive to adopt the cryptocurrency

Facebook Wants to Rival WeChat

How Global Coin will eventually manifest is still a matter of speculation. What is certain, though, is that Facebook wants to use its digital currency to emulate the commercial success of the Chinese social media platform WeChat.

What is WeChat?

In China, leading social media platform, WeChat features a mobile payments app which processes more payments per month than PayPal and Apple Pay combined. Mobile payments using WeChat are so ubiquitous that many retailers refuse to accept fiat cash. This resulted in 2018, with the People’s Bank of China having to issue a nationwide reminder that PBoC issued cash is still legal tender.

WeChat is so popular in China that many Chinese people do not own a bank account. The popular social media app allows users to pay for consumer goods as well as lend money to friends and family. However, this also gives rise to significant social challenges.

Global Coin Could Become a Totalitarian Nightmare

Imagine being an international movie star. Now imagine packing for an international flight, only to be denied permission to board at the departure gate. Now imagine finding out that the government has confiscated all your wealth, and you are no longer free to travel, communicate on social media, or even earn a living.

All of the above might sound Orwellian. However, all of the above accurately describes what happened to Chinese Xmen actress Fan Bingbing in 2018.

WeChat in China forms a significant part of China’s social credit system. If a person falls foul of the law or is suspected of wrongdoing, they can, therefore, find it impossible to travel and even buy everyday essentials.

Is Facebook the Next WeChat?

The idea of Facebook becoming an equivalent to WeChat and China’s social credit system might sound absurd. However, in recent years, Facebook has come under criticism for banning the accounts of outspoken conservative users.

In one recent case, a group of 1.6 million CrossFit workout enthusiasts was banned by Facebook for no apparent reason. This prompted CrossFit itself to publicly announce voluntary deletion of all its Facebook affiliated social media accounts. Reasons given included:

• The fact that Facebook aggregates and shares user information with government bodies and intelligence services
• Facebook bans user accounts for no apparent reason at the behest of corporate, political, and government interest groups
• Facebook routinely censors news feeds in a way which reflects a one-sided political bias toward the left

Global Coin is criticized because it may be designed to emulate China’s increasing WeChat-based cashless society. For this to materialize, Facebook and Global Coin would, therefore, have to have a monopoly on the mobile payments market, which could be very dangerous.

A Facebook Created Digital Currency Might Not Prove Popular

As well as mobile payment monopoly concerns, some argue that a Facebook created digital currency might fail to pique real Facebook user interest. As pointed out by TradeShift CEO Christian Lanng, Facebook already attempted to corner the mobile payments market in 2015, by introducing payments through its Messenger App.

Despite a costly marketing campaign, Facebook payments failed to capture the imaginations of Facebook’s 2.8 billion users. Therefore, earlier this year Facebook discountinued it’s payment services in Europe.

Should Investors Consider Investing in Facebook Coin?

When Global Coin launches in Q1 2020, it will no doubt result in a wave of excited investor interest. Facebook is the world’s largest social media platform. If Global Coin has a finite total supply and real utility value, it may, therefore, become a top token to invest in as early as possible.

Sadly, Facebook has not officially announced how the coins will initially be made available. Nor have they stated how the coins would work. In this case, investors will have to wait for the release of more details before planning an initial investment strategy.

Originally published at https://bittreo.com on June 18, 2019.