How Facebook Plans to Dominate Crypto
Facebook Coin has been in development since 2018, but recently, the social media conglomerate announced that it had bigger goals than just a simple token. It was looking to build an entirely new payment system. Presently, it is pursuing more than $1 billion in seed funds from major companies like Visa and Mastercard that it seeks to put towards its new system.
However, new details are emerging about the company’s coin that puts its status in question. At this stage, the coin is coming off more like a rewards points-platform than an actual currency. Basically, what is likely to occur is that businesses and individuals that utilize the company’s services will receive points that they can then redeem for the coins. These coins can then be used to make purchases from Facebook or through other companies that offer Facebook login options.
What’s interesting is that the coin will allegedly be a stable currency, meaning it will be tied to USD, thereby preventing volatility from taking hold. Nothing is set in stone yet, however, with a spokesperson recently commenting:
Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications.
The rewards system has many experts either skeptical or uninspired. Joshua Gans, a professor at the University of Toronto, doesn’t believe Facebook will be capable of doing everything it claims. For example, Facebook has allegedly said it’s considering offering coins to persons who view advertisements or videos on Facebook. Gans isn’t sure this will happen, saying that such a platform would be very “tricky” to build.
That’s not how the world works… I don’t believe they’re doing anything that isn’t in the service of increasing interactions on their platforms. There are a lot of moving parts. Facebook doesn’t always do what we expect.
Either way, Facebook’s venturing into the crypto space appears to be in line with executives’ plans to completely revamp the social media platform. Among the other changes that users can potentially expect in the coming months include “better checkout for Instagram’s digital mall;” a new tool that businesses can use to list products and services on WhatsApp, and donation stickers.
Additional Changes on the Way
Mark Zuckerberg, head of the organization, recently commented:
I believe that it should be as easy to send money to someone as it is to send a photo.
In addition, Zuckerberg and his staff have mentioned that Facebook will also be revamped to focus more on people’s most “intimate relationships.” The platform will also reportedly be set for stronger privacy.