Facebook are allegedly launching their own cryptocurrency this June, with talk of it being announced formally on June 18th. The Information released a report that detailed the release of Facebook’s ‘GlobalCoin’, which included outsourcing nodes and creating physical kiosks.

From discouragement to adoption

Facebook hasn’t always been a proponent for cryptocurrency. In fact, in early 2018, it issued a ban on all cryptocurrency ads altogether.

Not long after, however, the ban was lessened and then lifted altogether. Consequently, Facebook have geared up the blockchain projects recently, with the so-called ‘Project Libra’. The company allegedly plans on charging companies $10 million for the license to operate a node, with 100 nodes in total. It also plans on having physical ATMs and kiosks where users can draw out and deposit money.

Facebook’s cryptocurrency will be a stablecoin, meaning that it is tied in with other assets, such as traditional currencies or gold, is less volatile and therefore more reliable.

Is Facebook the right choice?

Given the public’s recent distrust of Facebook, is Facebook cryptocurrency a good idea? If it’s successful, will it give cryptocurrency a good name, and ensure it benefits all, with standards?

That much is unsure. However, as TechCrunch points out, “They’re still (probably) better than nobody.” Facebook will likely ignite adoption through convenience. Others may have no interest in cryptocurrency because they don’t trust it or they don’t know much about it. Yet Facebook’s influence extends to more than just the crypto community.

According to report, Facebook’s cryptocurrencies will directly target developing nations. These nations often struggle to have formalised banking, because of lack of accessibility. In addition to that, developing nations are also often at the whim of government-backed currencies, which can suffer from high inflation.

Will it mean mass adoption?

Facebook is a huge corporation, and in June 2018, it estimated that 2.23 billion users use its platform monthly. While it has been infamous recently for attracting a lack of trust, its reach is far enough that many may adopt cryptocurrency purely out of mainstream popularity. Up until now, there have been limited major corporate company adopting blockchain in a meaningful and mainstream manner.

In addition, because Facebook is essentially sourcing the project to outside backers, the trust problem will be largely reduced. People will not be required to trust Facebook. Instead, the trust will be spread out and distributed throughout a network, one that is fundamentally resistant to governance by one person or corporation.

Whether Facebook’s cryptocurrency will mean mass adoption remains unsure. Some suggest that it will. Others suggest that it could push Bitcoin’s price to over $10,000 USD after its launch, and eventually mean the success of Bitcoin over Facebook’s cryptocurrency. It seems like it could have the potential to change the way we see crypto, blockchain and monetary payments in general. Until we find out what exactly Facebook is planning, we can do little but speculate.

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