Home / Blockchain / Blockchain: Facebook is launching a ‘global’ cryptocurrency in 2020 – we’re all doomed

Blockchain: Facebook is launching a ‘global’ cryptocurrency in 2020 – we’re all doomed

Blockchain:

Rumors that Facebook has been working on a cryptocurrency haven’t exactly flown under the radar. And with the latest revelation, the Facebook cryptocurrency machine looks set to step up a gear.

Facebook says it will be launching its cryptocurrency – GlobalCoin –  “in about a dozen countries” by the first quarter of 2020. We can expect more solid details by summer, BBC reports.

Over the last few months, Zuckerberg has met with Bank of England governor Mark Carney to discuss the company’s cryptocurrency plans. Zuck also met with representatives from Gemini – a firm founded by institutional crypto-bigwigs and his nemeses, the Winklevoss twins – the Financial Times reports.

Blockchain: How will “GlobalCoin” work?

According to BBC, Facebook wants to make a digital currency that people without a conventional bank account can still use.

The Big F wants to work with banks and brokers to let users convert fiat currencies into its GlobalCoins. The social media firm is allegedly also in talks with money transfer services like Western Union to look for cheap ways to send money abroad.

BBC also says Facebook is in talks with online merchants to accept GlobalCoins as payment, with lower transaction fees as an incentive to use the digital coin.

It all sounds simple enough but there are some big questions that need to be answered.

For one, how decentralized will this system be? (after all, decentralization and censorship-resistance are two of cryptocurrencies’ unique selling points). For two, how is Facebook going to use cryptography to secure users’ assets? For three, who is going to be able to see a person’s transaction history? For four, who is going to control this system? Need I go on?

Earlier this year, JP Morgan took headlines after it announced the first successful use of its digital token, JPM Coin. Naturally, a flurry of reports followed saying that each token is redeemable for fiat, and that the system was powered by blockchain. JPM Coin sounded like a cryptocurrency, with one important distinction: it really isn’t.

JPM Coin is only available for certain institutional investors, and runs on an entirely private and permissioned (read: centralized) blockchain.

It’s not outside the realm of possibility that Facebook would follow a similar principle. Proof-of-Work blockchains, like Bitcoin, have long suffered scalability problems, an easy fix for this is to institutionalize the blockchain and centralize its consensus mechanism.

In other words, to ensure GlobalCoins transfer faster than current payment systems, it won’t be that surprising if Facebook takes control and verifies transactions itself.

Ultimately, it means the platform can set the terms of use and decide how people use the virtual asset. If users don’t comply, they could risk having their accounts frozen – and considering the company’s recent deplatforming moves, this is certainly a legitimate threat.

We’ll have to wait and see how strict the t

Read More

About admin

Check Also

Blockchain: Report: financial firms led by UBS invest $60M+ to form a company to develop blockchain-based tech for settling cross-border trades using a “bitcoin-like” token (Mix/The Next Web)

Blockchain: Report: financial firms led by UBS invest $60M+ to form a company to develop blockchain-based tech for settling cross-border trades using a “bitcoin-like” token (Mix/The Next Web)

Ashley Carman / The Verge: Apple breaks up iTunes, creates separate Podcasts, TV, and Music apps for macOS  —  Three dedicated apps  —  The iTunes era is over.  During its annual developers conference today, Apple announced that it's breaking iTunes up into three separate macOS apps: Podcasts, TV, and Music. More: Wired, The Verge, New…

Leave a Reply

Your email address will not be published. Required fields are marked *