Facebook Coin is proving to be something of a mixed bag for everyone involved.
Could Be Great if You’re a User
As a consumer or general user, the currency may have its benefits. If, for whatever reason, you don’t have reasonable access to cash or standard credit options, you’re likely to gain some advantage from the currency. You’ll be able to purchase goods and services through both Facebook and through whatever merchant offers Facebook login options on its website through what’s known as the “Libra Project.”
To be fair, however, this same benefit can virtually apply to any cryptocurrency granted the merchant accepts it as a form of payment, and that list is growing every day thanks to enterprises like Flexa, which are working with retailers such as Nordstrom, Jamba Juice and Whole Foods to make it easier for standard companies to accept digital assets in lieu of cash, checks or credit cards.
If you’re an employee of Facebook, things are bit more “in the middle.” Recently, the social media company announced that its employees will have the option of accepting Facebook Coin as their salary instead of garnering standard cash wages for their work.
This could be either good or bad. It’s good in that Facebook Coin is relatively new and there’s a lot riding on it. Granted there’s enough usage in the beginning, the price of Facebook Coin could potentially spike which means that your standard hourly salary turns into something of an investment that you’re earning profit on.
However, this may not be terribly likely given that Facebook Coin will likely be a stable currency, meaning it will be tied to USD and therefore less prone to the price swings one associates with cryptocurrencies like bitcoin. If that’s the case, the employees may just be better off accepting standard cash in “check form” for the hours and energy they devote to Facebook-related duties.
For merchants, however, things stand to be very rough in that Facebook is charging all retailers and companies interested in being part of the Libra Network a cool $10 million. The money will cover the licenses required to accept Facebook Coin, which means that this whole venture is likely a money-earning scheme initiated by the social media conglomerate.
Is Facebook Just Interested in Making Money?
Overall, Facebook’s cryptocurrency network would be handled by a private or independent foundation. The network would launch over 100 nodes, and each company would pay $10 million per node, which means that Facebook stands to gain billions in new funds should they agree to the terms.
In this sense, companies may be better off simply accepting credit cards or cash. There’s no need for them to pay that much to be part of an exclusive payment network unless, of course, they feel a great desire to be considered “exclusive.”