There are many rumors about Facebook’s plans for a new cryptocurrency. Most recently, it has been revealed that extensive testing is being conducted on what’s only known as GlobalCoin. All information points to the new cryptocurrency becoming operational by Q1 of 2020.
It’s not often that you’ll see a corporate giant like Facebook look for funding, but last month it happened. What is only referred to as “Project Libra” seems to be Facebook’s big cryptocurrency project.
Apparently, Project Libra requires an incredible amount of resources. $1 billion is joke, even for Facebook. The first mentions of the project came last year when Facebook was trying out different options for money transfers for its WhatsApp service.
In a very common mega-corporation fashion, the project grew alongside the company’s ambitions. Libra is now building a digital payments system that will provide fast, secure and cheap money transfers. Basically, the so-called GlobalCoin will be the company’s Bitcoin replacement.
Facebook’s massive userbase will allow GlobalCoin a whole new level of market of exposure. WhatsApp and Instagram will probably also use a form of the currency and this will expose GlobalCoin to more or less 90% of the entire world.
GlobalCoin will definitely be establishment-friendly
There troubling part is the rumored negotiations between Facebook and United States and UK regulators. The company has allegedly already begun talks with the Bank of England and the US Treasury about regulations, risks and opportunities tied to the project’s launch.
It’s more than obvious that GlobalCoin is designed to turn the entire crypto and financial spheres upside down. What easier way to do that than have the government behind its back?
Bitcoin is not controlled by anyone and a central authority does not exist. GlobalCoin however, will be entirely under one mega-corporation’s control. Not only will there be an authority which decides everything, every single identity of the coin’s holders will be known.
Countless scandals and leaks have confirmed that Facebook is mishandling user data.
Facebook is not afraid to censor and/or completely remove people it disagrees with from its platform. There’s no reason to think that the policies for its crypto wallets will be any different. If GlobalCoin sees the light of day, it will entirely remove the purpose of a decentralized digital currency.
Government backing, massive investments and secrecy have never led to anything good, so why should GlobalCoin be any different. The hype around the cryptocurrency’s release might be huge, but people who buy-in heavily, can quickly find themselves either broke or on Facebook’s naughty list.
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