According to tech information The Information, Facebook will announce its cryptocurrency program later this month and allow internal employees of the project to receive the cryptocurrency as a salary.
When the "New York Times" and other media broke out the Facebook cryptocurrency project, a major concern was that Facebook, as an almost monopolized social networking giant, had a "centralization" problem with its cryptocurrency projects. This is completely contrary to the idea of blockchain. The Information said in the report that Facebook plans to give control of the cryptocurrency to external organizations to ensure that it is not fully centralized.
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To achieve this goal, Facebook will invite third-party organizations as “nodes” to participate in the management of its cryptocurrency. In addition, internal discussions are also being made to collect 10 million US dollars from third-party nodes as a threshold for participation to ensure that third-party nodes have basic capital and governance capabilities. Currently, Facebook is setting up a foundation to manage its cryptocurrency with designated partners.
In addition, Facebook is also planning to launch a physical machine similar to the bank ATM, to ensure that users can use their cryptocurrency in a richer scenario, not just online.
The Facebook digital currency project has been widely reported by many well-known media in the past few months. In addition to the Financial Times, Bloomberg, The Wall Street Journal, and The New York Times all recently revealed the rich details of Facebook's digital currency. According to the Mars Financial APP (ID: hxcj24h) , the core information can be summarized as 8 points:
1. The internal name of the Facebook digital currency project is “Project Libra”, which is characterized as a stable currency and will anchor multiple national currency, not just the US dollar.
2. Facebook plans to apply its stable currency to its three major communication/social tools, WhatsApp, Facebook Messenger and Instagram. Currently, the total number of users of these three products is about 2.7 billion.
3. Facebook Stabilization Coin will be integrated into its core advertising system to reward users for their creation, sharing, and dissemination. Users can also purchase goods through Facebook's stable currency.
4. Facebook Stabilizer will also be used for actual payment. Facebook is negotiating with Visa and MasterCard. In addition, Facebook is also negotiating with financial information service company First Data and some e-commerce platforms.
5. Facebook believes that the existence of stable currency is to eliminate credit card fees, and at the same time eliminate the price fluctuations of encrypted assets such as BTC and ETH.
6. Facebook is seeking $1 billion in investments to support digital currency projects and stable currency savings
7. The official name and launch date of the Facebook digital currency project has been determined – the product name is GlobalCoin, which will be launched before the first quarter of 2020
8. Facebook is negotiating with the US Derivatives Regulatory Commodity Futures Trading Commission (CFTC) on the digital currency program. CFTC Chairman Christopher Giancarlo has confirmed this. Giancarlo said that the negotiations between regulators and Facebook are still in the early stages, they need to know whether Facebook's digital currency plan is in the CFTC regulatory area.
Mark Zuckerberg stresses that payment is an important area of Facebook
Earlier this year, Facebook founder and CEO Mark Zuckerberg emphasized at his developer conference that payment is an important area of Facebook. The cryptocurrency may be one of the important businesses in the field of Facebook layout. However, sources said Facebook's chief operating officer Sheryl Sandberg and chief financial officer David Wehner were "skeptical."
As early as more than a year ago, Facebook began to plan the field of cryptocurrency. Facebook appointed company executive David Marcus to take charge of its blockchain division. Marcus has served as President of PayPal and has extensive payment expertise. In December 2017, Marcus also joined the board of Coinbase, where he was the vice president of Facebook Messenger products, in charge of Facebook Messenger and WhatsApp. In August 2018, Marcus left the board of Coinbase. A Coinbas spokesperson said that Marcus needs to leave the board to avoid conflicts of interest.
△ David Marcus, head of the blockchain department of Facebook
Almost at the same time, Marcus began to explore a range of encryption technologies and products based on BigStand technology. Also from this period, the media began to report that Facebook is developing its own cryptocurrency news. Through this cryptocurrency, Facebook users can exchange legal currency, store and trade, and transfer money between friends via Facebook Messenger and WhatsApp.
Facebook's entry into the field of encryption: the anxiety of a single source of income
Unlike other products in a single market or a single group, Facebook's actions in the field of encryption are more concerned. It has a huge product of over 100 million users such as WhatsApp, Facebook Messenger, Instagram, etc., connecting people from different regions and ages in the world. Once the currency is successfully issued, its impact will be world-class, and it is even possible to create a truly "global currency" – such as the "GlobalCoin" that Facebook named the product.
At present, Facebook's revenue is almost entirely from advertising. The revenue of other businesses such as online games has been decreasing year by year. Emerging businesses such as VR glasses Oculus are unable to generate revenue in the short term. Facebook has been accused of infringing on user privacy in the past year, and it has mapped out the shortcomings of the social network profit model—the natural contradiction between collecting user data to advertise and making money and better serving users, and also reflecting the company’s dependence on a single The crisis of business. In this case, using cryptocurrency to increase revenue is extremely urgent for Facebook.
Former Facebook employee and current blockchain investment company YGC managing partner Henry Liu said: "Payment and e-commerce is the only way for Facebook to get rid of the current free value-added and advertising business model."
Facebook wants to establish "global currency", the encryption world opens to 2.7 billion people
Facebook currently connects 2.7 billion global users, and its digital currency may change the foreign exchange and remittance industries. According to Konstantin Brazhnik, blockchain company Juris Project CTO, in the United States, it is natural that the French currency is naturally circulated because the US dollar is the actual global reserve currency.
If there is a faster, cheaper currency as a value-transfer tool, users are likely to flock to it because it can help them avoid the complicated and annoying foreign currency exchange services when they leave the country. If GlobalCoin gets the support it needs, it will take advantage of the convenience in the field of payment and redemption, and it is expected to become a "global currency" in the true sense.
This speculation may soon be fulfilled. The BBC said in the report that Facebook plans to start testing GlobalCoin by the end of 2019, and establish a digital payment system in more than a dozen countries around the world by the first quarter of 2020.
This article is intended to provide more market information and does not constitute any investment advice.
Text | Du Huitang
Produced | Mars Financial APP (ID: hxcj24h)