Facebook, the top-notch social media tech giant once the only social site is now on a novel drive to crypto currency. Yes, Facebook has recently announced the launching of its own new crypto currency in 2020 with the name of Global Chain. According to sources, it is speculated that Facebook will use all of its three major social media networking sites, i.e. Facebook, Instagram and Whatsapp to launch Global Chain crypto currency. The working instrument of Global Coin will be based on blockchain technology. The blockchain technology is a distributed ledger technology on which every decentralized crypto currency works.
The cryptocurrency is basically a kind of digital currency or digital asset that is used as a medium of digital transaction on digital platforms. The digital transaction uses strong cryptography to secure financial transactions. The financial transactions via crypto currency is decentralized unlike the centralized banking system or centralized digital currencies like DigiCash. The DigiCash is where the mother of all centralized digital currencies. Bitcoin at the same time is the father of all crypto currencies. Yes, Bitcoin is the first stable cryptocurrency. To make it more stable and frictionless stablecoins came into being. Stablecoins are basically pegged against the stable asset or basket of assets. That stable asset can be any precious metal, industrial metal or a paper currency. Facebook has shown its interest in the form of stablecoins cryptocurrency back in Dec, 2018, and it is expected that Facebook Global Coin will be based on stablecoins mechanism.
It is not clear yet that Global Coin mechanism will be based on stablecoin. Though, it is indubitable that Facebook will dive in the pool of crypto currency amidst of 2020 (the global economic transformational era). Here, the question arises, how Facebook is going to introduce its new crypto currency and where? Why Facebook felt the need to introduce crypto currency? What will its crypto currency be? The answer to all these three questions are in Project Libra and its projection.
Project Libra is a code name identified by Wall Street Journal against the Facebook effort for building a new secure global crypto currency. The Project Libra was named after the Libra Networks company which was registered with Facebook in 2nd May, 2019 in Switzerland and its major stakeholder is Facebook Global Holdings. Facebook has started working on crypto currency with the boom of Bitcoin and the currencies like it. The first symbol of its attraction towards crypto can be traced back to December, 2017 with the joining of David Marcus (that times Vice -President of Facebook messaging products) to Coinbase board of directors. Later in December, 2018 Bloomberg has reported Facebook intention to build stablecoin, which is still between the myth and reality. Despite, the reality is that Facebook has acquired Chainspace (British Blockchain Company) in February 2019 as an acqui-hire by hiring its workforce through its blockchain based job openings. After these events, in May, 2019 Facebook has spoken to the leading crypto exchanges and met with major payment firms like Western Union and Visa to get deeper insight into cryto possibility. This whole endeavor has brought Facebook at the place. Where it has made the decisive decision on evolution. Evolution of a social networking website to the new transformational social crypto network. This social crypto network will be integrated with FB and all of its products after the creation of crypto currency by Libra Networks (The Project Libra).
Libra Networks has planned to devise new cryptocurrency with the name of Global Chain for Facebook, which will be made worldwide public in the first quarter of 2020.
Global Coin- Future & its Consequences:
Global Coin (Libra or FB coin) is a kind of tame cryptocurrency, i.e. more Bitcoin 0.5 than 2.0. To bring Global Coin into more practical use Facebook may unify Instagram, WhatsApp and Messenger. It will increase the person-to-person contacts and raise the possibility of Global Coin as a medium of exchange for digital services. According to FBs 2017 report, 98% of Facebook revenue, which was equivalent to $40 billion comes directly from the advertisement. If Facebook has changed its system of money transfer with its cryptocurrency then there is a possibility that FB will earn only $19 billion through advertisement in 2021 as estimated by Barclay’s analyst. The time will decide what will happen next. However, in the light of BBC’s recent story it is possible that FB will seek out special discounts from retailers to facilitate its Global Coin Users. This facility will not only facilitate the Global Coin users, but it will also benefit FB and e-tailer both at the same time. As it will keep e-tailers safe from the profit margin leakage at the hands of credit card companies, and Facebook will be able to bring its own crypto currency in circulation. Hence, the future of Global Coin is dubious, but… Facebook New Crypto drive is certain!