Facebook Coin Might Be More Than a Delivery System for Loyalty PointsMay 18, 2019
Facebook declines to comment about the rumors related to the new cryptocurrency company, “Libra.” It was raising a $1 billion to build the technology.
The progression of Facebook towards cryptocurrency has been slow and steady. On May 14, 2019, Facebook hired Coinbase compliance managers.
The US lawmakers sent an open letter to Facebook requiring clarifications about the purpose and implications of the currency.
The Wall Street Journal reported that Facebook would be recruiting financial firms and online merchants to launch the cryptocurrency payment system by making use of its social network. In the past year, Facebook required several US Banks to share financial information related to their customers. Privacy experts raised questions relating to the extensive data collection practices of Facebook. The experts also want to know if the data thus collected by Facebook is being used in a way which might subject Facebook to Fair Credit Reporting Act.
With stable coins being popular than before, a recent survey revealed that Facebook Coin would play as a perfect catalyst to help with the mass adoption of cryptocurrency. Several other companies are as well creating stable coins and other tradable blockchain related crypto assets.
A blog post read thus: “Facebook can tap into a considerable percentage of Americans (and their bank accounts) that have alluded the biggest virtual currencies like Bitcoin, Ethereum, and Ripple. Our data seems to indicate that this is in large part due to Facebook’s potent brand.”
Since there is not enough reliable information, analysts are beginning to speculate. While there are speculations about every kind of cryptocurrency ranging from TCAT tokens, Stellar Lumens, and Litecoin, speculations about giants matter in a great deal.
Lisa Ellis opines that Facebook Coin might end up being an internal payment and behavior reward system which the social media giant might use to encourage people to watch its ads in its platform to earn coins. She feels that it is most likely for Facebook to create a more-public currency which will be governed by an independent board, Ethereum has one such committee.
Moffett Nathanson, LLC the independent research boutique noted that Facebook is working with big payment companies like VISA, therefore stating that it might not be Facebook’s intention to provide for just a delivery system for loyalty points.
Ellis further wrote, “an open cryptocurrency system is more likely to encourage commerce over the Facebook system than a closed cryptosystem because open crypto is more liquid (easier to exchange to/from fiat currency, so more likely a consumer is willing to use it).”