Written by Jorge Tenorio
It's no secret that cryptocurrency has gained wide popularity over the last two years. While a few major coins dominate the market, dozens of smaller coins also play a role in the roller coaster ride that is cryptocurrency.
Facebook seems poised to enter the market as well.
Facebook Getting in on the Action: GlobalCoin
During the first quarter of 2020, Facebook is planning to release its own cryptocurrency, called GlobalCoin. A large team of 60 people have been working on the project internally while keeping a tight seal on the status of the launch.
While some are enthusiastic about this new development, others understandably have their reservations.
Facebook currently has over 2.3 billion users, all of which could potentially be exposed to GlobalCoin next year. The consumer reach alone increases the chances of GlobalCoin making a huge splash within the cryptocurrency market.
Some think it’s too Much
One of the drawbacks that consumers and analysts are discussing is that the launch of their cryptocurrency simply adds too much to the pot. Facebook's recent lack of success with payments simply proves that not everything that Facebook does will become a huge success.
While the world is still in relative darkness about the intended use of GlobalCoin, it seems destined to become another form of payment within the app itself. This could turn out to be a huge negative if a large portion of users don't trust cryptocurrency in general.
A Potentially Huge Splash in the Markets
Other analysts are more enthusiastic about its release.
There's no question that the launch of GlobalCoin will create a significant amount of hype about the cryptocurrency world. More users will educate themselves on the benefits of using it, and overall awareness will increase drastically. Many are predicting the large influx of new cryptocurrency users will provide a huge boost to other coin prices, many of which have suffered badly over the last year.
Potential Uses for GlobalCoin
While speculation abounds for the future use of Facebook's cryptocurrency, some uses are obvious and have already been revealed:
- Facebook will use GlobalCoin to make money transfers more efficient.
- The coin will be used as a way to make transactions more secure.
- One of the largest target markets for this coin is individuals without bank accounts.
While some of these are still up in the air, Facebook is already reaching out to online merchants to begin forming partnerships for accepting the coin online.
A Potentially Major Headache for Facebook
Growth and product launches rarely go off without a headache, and Facebook is no different.
One of the major challenges will be swapping out GlobalCoin with other currencies like the euro, the U.K. pound and the Japanese yen.
The fact that this new cryptocurrency will serve its intended use by playing a big role in the exchange process instead of an asset will make it even harder for social media masses to use it on a regular basis.