Reportedly, Facebook will finally make a declaration on its secretive cryptocurrency project with a Whitepaper launch on 18th June 2018. Laura McCracken, Head of Financial Services & Payment Partnerships Northern Europe at Facebook confirmed with the WirtschaftsWoche at a conference in Amsterdam,
“The publication of the Facebook Coin whitepaper is scheduled for June 18th.”
McCracken also talked about nature and the value backing the cryptocurrency. She said,
“The value of the Facebook Coin should be kept stable by a basket of Fiat currencies,”
A basket of cryptocurrencies would imply that the price of the cryptocurrency is accounted for from a variety of currencies in varying percentages. For example, a basket of 5 currencies including US Dollar, Japanese Yen, Euros, British Pound, and the Indian Rupee. Moreover, the percentage contribution of each cryptocurrency can also be varied to assign a higher percentage to the dollar or yen compared to Pound or Rupees. This is being done to induce a very high level of stability in the price.
Facebook Globalcoin will be one of the most significant announcements as will directly challenge the banking system of the world with cross-border payments enabled for individuals, some of whom don’t even have bank accounts.
Recently, a report by The Information suggested that Facebook will start clearing the salaries of employees using its cryptocurrency. Facebook has generated as much a $55 million revenue from advertisements in 2019; hence, the total turn-over must be way more significant. Moreover, according to estimates, Facebook can increase its revenue by $19 billion if the cryptocurrency is implemented. Hence, Facebook officials might be motivated to make the project a success.
Do you think that Facebook’s cryptocurrency will create any regulatory challenges? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com