Facebook said it will launch its own crypto currency, "GlobalCoin" in about 10 countries in the first quarter of 2020. And the co...
Facebook said it will launch its own crypto currency, "GlobalCoin" in about 10 countries in the first quarter of 2020. And the company will provide more information related to this cryptographic currency this summer.
In the past few months, Zuckerberg has had meetings with Bank of England Governor Mark Carney to discuss the company's pre-coding plan. Zuck also met representatives from Gemini - the company founded by two names that were so famous in the pre-coding market, and also a longtime rival of Mark, were the Winklevoss twins.
Facebook wants to create an electronic currency that people don't need a traditional bank account can still use.
The company wants to partner with banks and brokers to allow users to switch from official banknotes to GlobalCoin. It is known that Zuckerberg's company also discussed with money transfer services like Western Union to search but the cheapest way to transfer money abroad.
And yet, Facebook also met online business companies to convince them to accept GlobalCoin as one of the payment methods. With lower transaction fees normally as a move to encourage users to use electronic money.
It sounds pretty simple, but there are a few big questions surrounding Facebook's cryptocurrency:
"First, how decentralized will this system be? (Decentralization and anonymity are two key features of pre-coding.) Second, how Facebook will use encryption to protect users' assets. Third, who will be able to view a user's transaction history? Fourth, who will control this system".
Earlier this year, the bank JP Morgan made the public buzz after announcing the first time to successfully use its digital token, JPM Coin. Next is the appearance of a series of reports saying that each token can be converted to traditional paper money, and this system is developed by the blockchain. JPM Coin looks like a crypto currency, but there is an important difference: in fact it is not pre-coding!
JPM Coin is only available to certain institutional investors, and runs on a completely private and licensed blockchain (ie "centralized").
Facebook can absolutely go in the same direction. Well-known blockchain, such as Bitcoin, have long had problems with scalability, and an easy way to overcome this problem is to institutionalize the blockchain and centralize its consensus mechanism.
In other words, to ensure the GlobalCoin transaction process is faster than the current payment systems, it is not surprising that Facebook must take control and authenticate transactions.
Thus, this platform can set usage rules and decide how users will use virtual assets. If the user does not cooperate, their account is at risk of freezing - and considering actions that impose recent users on their platform, this is certainly a foretold threat.
Anyway, we have to wait to see how strict the rules are.
Source TheNextWeb
Composed by Mr. Lucky
