Facebook Collaborating with 3rd Party Organisations for GlobalCoin
Facebook, from all accounts, has accelerated their production plans for their cryptocurrency “GlobalCoin”. Reports indicate that the social media giant is talking with several online merchants and exchanges to bright GlobalCoin onto the global financial stage in a few months. Recently, it appears Mr Zuckerberg has spoken with the Winklevoss Twins to have GlobalCoin launched on to the Gemini Crypto Exchange.
Facebook and its’ executives see the growing potential for cryptocurrency in the global payments market. That’s why the company is rushing to finish production on GlobalCoin. The faster the company completes its crypto goals, the fast their coin can enter the cryptocurrency market space.
Facebook’s GlobalCoin Moving Forward
Facebook plans to make GlobalCoin a universal currency that could be accessed through Crypto ATMs. These ATMs are slated to have a feature that will allow clients to deposit their paycheques and receive GlobalCoin in return. This would allow for the coin to grow exponentially, making it a worldwide product used by the two billion users Facebook currency maintains. However, this will be a difficult task that will require billions in investment from the social media giant.
Additionally, it looks like Facebook will be using third-party organisations that will assist the social media giant with managing their crypto coin and network. Of course, for their assistance, these third-party companies will receive compensation. However, Facebook is slated to change $10 million to any third-party organisation that wants to partner up with them. Ultimately, this would create a monopoly effect where Facebook would have priority control over other firms in the cryptocurrency space. Third-party organisations could be a ploy to convince investors that Facebook would have central control over GlobalCoin. This ploy is the result of the social media giant undergoing privacy breaches through 2018.
Banks worried about Facebook’s GlobalCoin
Some banks and regulators are worried about the upcoming GlobalCoin. The British Bankers Association Chief Economist, Rebecca Harding, is concerned that Facebook will take advantage of the fact that they aren’t regulated in the same way that other financial institutions are regulated. However, the banks will continually have a biased opinion towards cryptocurrency, as it affects their trading volumes dramatically.
Those banks willing to modernise are creating their unified coin. Fourteen banks worldwide have come together to create the Utility Settlement Coin, which will directly rival GlobalCoin. Furthermore, having the USC backed by fourteen banks guarantees that there will never be any anti-money laundering schemes through their exchange.