Facebook's ambition: From the business circle of the social platform to the next world currency?
Facebook is about to launch a stable currency, which has long been a news of no news. Zuckerberg has repeatedly talked about Facebook's stable currency plan in public, and various media also competed to report.
Earlier news was that Facebook plans to establish a digital payment system in more than a dozen countries around the world by Q1 2020 and hopes to test its cryptocurrency GlobalCoin by the end of this year.
However, on June 6, according to The Information, Facebook will launch GlobalCoin, a cryptocurrency chain anchored by many countries, next month. At the same time, Facebook will also launch ATMs for supporting entities, and Facebook employees can also exchange wages for GlobalCoin. .
The general reaction of the currency circle is "how fast", we all know that it will come, but I did not expect it to come so fast. Undoubtedly, Facebook has accelerated his stable currency process.
At present, the blockchain industry is developing rapidly, and traditional banks and major companies are also running. In February of this year, JPMorgan Chase launched the stable coin JPMCoin and joined a number of banks.
We also mentioned that in May this year, Zhang Hui, head of the ant Jinfu blockchain department, said that Ant Financial is exploring how to issue digital assets in the blockchain with “some form of tokens”. These assets are linked to certain values of the physical world, such as legal currency or other types of assets.
The unclear attitude of the government will cause domestic enterprises to lose the opportunity to compete for the stable currency market. Ma’s point system, qq coin, can be developed into stable currency. If there is no regulatory constraints, I believe that Alibaba and Tencent will soon enter this market.
On June 1st, E OS launched the social project Voice on the chain, pointing to traditional social media. Many people think that Voice will become a Facebook competitor in the future.
The running of major companies also made Facebook feel the pressure and further accelerated the stable currency process. A year ago, Facebook began to plan the field of cryptocurrency. But this year, it is developing at a rapid pace.
In May of last year, Facebook formed the blockchain department and appointed company executive David Marcus to take charge of its blockchain division. Marcus was the president of PayPal, a member of the PAYPAL gang, and a member of the Coinbase board of directors. He has extensive experience in blockchain and payments. Since then, Facebook has recruited more than 50 engineers to develop cryptocurrency. The blockchain department has an independent office and has super access rights to develop secret blockchain projects.
Then less than a year, it is said that on the 18th of this month, Facebook is about to announce the Globalcoin stable currency plan.
As the world's largest social media, Facebook's eco-users are 2.7 billion, close to a quarter of the world's total population, and monthly active users reach 2.4 billion. The huge amount of users of the giant company, entering the cryptocurrency market, is undoubtedly a big event of cryptocurrency, which has far-reaching significance for cryptocurrency.
The 2.7 billion global users + Globalcoin bring a huge imagination, and its advent is its ambition to rely on users around the world to create a global currency.
Business circle currency
As a social platform, Facebook's revenue comes from advertising. Facebook plans to integrate the stable currency Globalcoin into its core advertising system to reward users for their creation, sharing and dissemination. Users can purchase items through Globalcoin, and advertisers can also use it to pay for advertising. According to reports, Globalcoin will also be used for employee wage payments.
As a business circle coin, similar to the integral function, a part of the advertising profit can be returned to the ordinary user to stimulate the user's use behavior. But Facebook is a listed company after all. It needs to be responsible for its own shareholders. It needs to balance the interests of shareholders and users. The proportion of benefits that can be distributed to users is not too great.
As a business circle coin, its future enemy is Voice Token (VT). Voice will become a social platform on the blockchain in the future, let the social return to the source, and fully assign the advertising interest to VT, so that all VTs are held. Users share revenue.
New swift for cross-border payments
Cross-border payment has always been a pain point for international trade due to its long time and high cost. In China, there is a limit of 50,000 US dollars per person per year. In the past few years, because of the use of 50,000 US dollars each year, the account number has been frozen for no reason, and a few friends who have helped me have been frozen. Moreover, cross-border remittances take about five working days, and the rest days are not counted. They cannot be remitted 24 hours a day. In an emergency, they can only be anxious. So bitcoin is very advantageous as a cross-border payment, but early traders do not accept bitcoin payments.
As a cross-border payment currency, cryptocurrency has the natural advantage of bypassing interbank transactions, bypassing Swift, and reducing costs, time-free, and easy to operate anywhere, anytime. Therefore, many cryptocurrencies are under the banner of cross-border payment.
Facebook is also in initial contact with governments, central banks and regulators, as well as a number of multinational remittance companies, including Western Union. If GlobalCoin successfully obtains the support it needs, it can be easily paid and redeemed, and it could become the world's largest cross-border payment instrument. The system also banned interbank Swift and became a cross-border payment bank.
Global payment system
Social + payment, we are no stranger. With the huge number of WeChat users, WeChat + payment, let Tencent become a mobile payment giant, and Ma Yun's Alipay court. Now, Facebook, the global social software with more users, is coming, which is a big event in the global payment market. The 2.7 billion registered users bring a huge imagination.
Zuckerberg once emphasized at his developer conference that payment is an important area of Facebook. Globalcoin is said to help Facebook's billions of users transfer money and shop online. Earlier, there were reports that Facebook was negotiating with payment companies including Western Union, Visa and MasterCard to support and fund its planned cryptocurrency.
According to the BBC, Facebook hopes that Globalcoin will break the traditional financial barriers and “subvert the traditional transfer network” by reducing consumer transaction costs and competing with banks.
In addition, according to Facebook's plan, GlobalCoin will allow those who do not have a bank account to collect money and send money.
Zhou Xiaochuan, the former governor of the People's Bank of China, once mentioned the idea of super-sovereign currency, creating an international reserve currency that is decoupled from sovereign countries and can maintain long-term stability of the currency. The super-sovereign currency is mainly composed of a basket of currencies, gradually replacing the existing reserve currency, the US dollar, thus ending the era of dollar rule. However, due to various reasons, Zhou Xingchang’s ideal has not been realized.
Facebook's Globalcoin puts the idea of super-sovereign currency into practice, and may even replace the dollar as the world currency in the future.
In order to maintain the stability of the stable currency and avoid price volatility, Facebook hopes to circumvent this volatility by linking Globalcoin to a basket of existing currencies including the yen, the euro and the US dollar.
To become a world currency, Globalcoin needs some essential factors. First, we must be able to prove the stability of our value for a long time, and the market must generally recognize the value of money. Secondly, the currency also has a huge trading network, and the currency can be exchanged anytime and anywhere, without the possibility of losing the acceptance due to national, regional, political and other restrictions. In addition, the currency must have a very high market depth and trading liquidity. The reason why many currencies cannot become the world's currency is that there is no market depth and liquidity is insufficient. This is the case with Bitcoin. Bitcoin does not become a world currency until there is no huge market capitalization.
Because of its large user base, Globalcoin has the potential to become a world currency, but whether it can become a world currency requires time to prove its value and stability.
In addition to the above ambitions, Facebook can be said to be a full-blown attack, and has already targeted the access channel of cryptocurrency. This will be a huge challenge for other stable coins! According to the British "Financial Times" report, two people familiar with the matter said that Facebook has also been negotiating with Coinbase and Gemini exchanges, hoping to provide its users with a third-party, regulated platform to store and exchange assets.
According to RossSandlere, an analyst at Barclays Bank, the second-largest bank in the UK, by 2021, Facebook's stable currency will generate more than $19 billion in additional revenue.
Stabilizing coins is a huge market and a huge cake. At present, I have not seen the Chinese giants participating in the competition.
Author: Allin block chain