Facebook’s GlobalCoin Will Likely Pay Interest to Users

If you like what you read, feel free to share it:

A Wyoming Blockchain regulator and so-called “crypto-mom” Caitlin Long has made 6 predictions on the upcoming Facebook’s cryptocurrency dubbed GlobalCoin. She predicts that Facebook could potentially pay interest to its users.

“Facebook will pay interest to users of its cryptocurrency, which will eventually lead to populist calls to repeal subsidies at the heart of the US banking system,” she writes on Twitter.

Backed Assets could probably be stored in the Federal Reserve

It is a well-known fact that Facebook’s anticipated cryptocurrency will be a stablecoin. That means that it will be backed by a large sum of fiat currency. This money Facebook will probably store somewhere where it could generate interest. That is why Caitlin speculates that the place where to hold that amount of money could be the Federal Reserve.

Caitlin Long says that up to date, stablecoin issuers have generally pocketed the float on assets backing the coins. However, her next prediction is that Facebook won’t be able to pocket these big profits without sharing them with their users. Simply because of the fact that Facebook’s cryptocurrency will be the largest and most public crypto entity one has ever seen in this market.

“If Facebook doesn’t share these interest spoils with users, a chorus of critics will loudly publicize how much money Facebook and its partners are pocketing,” says Long.

According to Federal Reserve’s interest on excess rate, the Federal Reserve pays 2.35 percent.

More Predictions

Long went on and predicted other things related to the Facebook’s cryptocurrency. She believes that Facebook’s GlobalCoin will face all kinds of regulatory uncertainty. In addition to this, she commented that she knows a perfect regulatory structure for this. Hinting her Wyoming Blockchain Task Force and the state of Wyoming in general.

Next, she believes that the new cryptocurrency will reveal how much of the recently widely discussed Facebook 2.3 billion users are real. This is because in order to use the currency users will have to pass KYC procedures.

She goes on saying that Facebook will become a “huge data honeypot for governments globally with all the privacy and tax reporting implications such as data honeypot entails,” she writes. All-in-all, she asks quite a rhetorical question. In the case of Facebook being struck with government regulations – “would it fight or fold?”

GlobalCoin Could Drive Bitcoin Adoption

The last thing that Caitlin predicts is that the development of GlobalCoin could potentially boost the adoption of Bitcoin. She says that by “educating consumers about the benefits of crypto and improving the user experience, Facebook will pull more users into Bitcoin, whether it intends to or not.” While Bitcoin is the king of cryptocurrencies, it is still the only ledger in the cryptocurrency field which is considered the most honest of all. People will recognize this as they embark with the new cryptocurrency. If comparing Bitcoin to Facebook’s GlobalCoin, the main reason why people might turn to Bitcoin is that it’s more scarce while Facebook’s cryptocurrency is not.

“Facebook will greatly accelerate the pace of teaching people about cryptocurrencies. And when this happens, more people will turn to bitcoin for one simple reason—bitcoin is scarce, while Facebook’s cryptocurrency is not,” says Long. 

Source:

https://www.ccn.com/facebook-cryptocurrency-pay-interest-users
https://twitter.com/CaitlinLong_/status/1137832406206046209

Crypto Mainstream Adoption: Nike Joins the Family with CryptoKicks!

If you like what you read, feel free to share it:

Nike recently filed an application with the United States Patent and Trademark Office to trademark the phrase “CryptoKicks”. By doing so, Nike joins multiple large corporations like Facebook, JP Morgan, Samsung, and many others in the crypto mainstream adoption race. 

Nike Prepping for Something Big

For starters, it is clear that it won’t be a new apparel or shoe collection with a crypto theme. Nike Inc. filed the application and it itself reveals much information on the recent Nike move. For example, the application says that Nike aims to provide “financial services, namely, providing a digital currency or digital token for use by members of an on-line community via a global computer network”. Additionally, they describe the service as a “website featuring technology that enables users to mine, earn, purchase, receive by any other means, store, and transfer blockchain-based tokens, coins, cryptocurrencies, and other crypto assets”. This is a clear sign that Nike is prepping for something big.

Could this mean that Nike is aiming to develop a fully-compatible, all-inclusive cryptocurrency platform? Which would also serve as a miner? Some say that this could potentially be a rare Nike shoe collectible marketplace. In it, you could only purchase collectibles with CryptoKicks, a native cryptocurrency.

John Gerben, a trademark lawyer, explains this situation. He says that such big corporations like Nike don’t just file trademarks right and left just for the purpose of speculation. First of all, if Nike gets the trademark, they get the rights to use the name “CryptoKicks” for four years. But there is a large “but” in this situation. If Nike gets the trademark for four years, they have to launch a commercial product under that name. This exact point means that Nike will soon publicly announce their steps into the crypto-space.

CryptoKicks can outperform Facebook’s GlobalCoin, Experts say

Experts point out that Nike’s CryptoKicks service (or application) could potentially outperform Facebook’s. While Nike’s application identification looks like they just added every possible characteristic of cryptocurrencies to their service, CryptoKicks has a better chance to attract more attention than Facebook’s GlobalCoin. The main idea behind this is that Facebook’s cryptocurrency use case is yet to be designed, while Nike just has to change the purchasing model in its new app. The world is full of rare shoe collectors and they would most definitely switch to using CryptoKicks as a way of paying for their rare shoes.

Facebook, on the other side, has yet revealed only the intent to cover the remittances market in India. However, the Indian Government has had a hard time defining the regulation of cryptocurrencies. Rumors of an outright ban have been active for about a year or so. But now, when the G20 summit is near, it seems like the report detailing the country’s crypto regulations is finally ready and soon will see daylight.

At the moment, the crypto community is closely watching the progress of Facebook’s GlobalCoin development. Anthony Pompliano even believes that it will become the most used product in crypto. To be honest, it shouldn’t be so hard when you have a monthly user base of 2,7 billion.

However, Facebook has a very bad reputation, since the leak on the company’s use of user data. Also, recent reports say that Facebook is seeking for additional $1 billion in Venture Capital for its new project. Experts believe that this a previously-planned move to make the “Project Libra” seem more “decentralized”.

Major Corporations Getting in the “Crypto Game”

It all started with JP Morgan when they announced the JPM Coin. It shocked the crypto-world, as Jamie Dimon, the CEO of JP Morgan, has been a very active opponent of cryptocurrencies. Especially Bitcoin. With this move, JP Morgan is prepping for a revolution in the FinTech industry. The JPM Coin is a digital stablecoin which will be used by the banking behemoth to instantly settle transactions between the clients of its wholesale payments business.

Also, a Russian social network giant VKontakte also has shared plans for launching its own cryptocurrency and a tipping service. VKontakte (or VK.com) was created by Pavel Durov, the Telegram Messenger founder, in 2016. VK is available in several languages but it is especially used by Russian-speakers. The platform has around 97 million monthly users. Their primary intent for a native cryptocurrency is to reward the users for the time spent on using VK’s services. 

While all these companies are only in the plans of developing a cryptocurrency or a crypto service, Samsung has already taken huge steps towards blockchain and crypto implementation within their work field. Recently their new Galaxy phone was presented with an in-built crypto wallet support. However, in general, Samsung Electronics is looking into developing its own blockchain and possibly an ERC-20 Ethereum-based token “Samsung Coin”. Of course, the company officials have rejected such rumors, but you know, that could be a part of the strategy.

A Token for Every Service

All-in-all, it is clear for me that the large corporations are actively getting into the crypto-space. Nobody wants to be left out. Many predicted this during the 2017 bull-run. While back then, saying that Facebook or Nike could someday develop their own tokens or coins was just a speculation, today this has become a reality. I mean, they are now making movies about crypto… But a different token for every company, for every service? I think the ICO craze of 2017 proved that this isn’t such a good idea, but apparently, the large corps think differently. 

In my mind, I see a world where we all have multiple crypto-tokens for everything we do, and one store of value asset like Bitcoin, where we hold our finances.

Source:

https://oracletimes.com/nike-hops-in-the-crypto-wagon-and-unveils-blueprint-for-crypto-marketplace/
https://www.newsbtc.com/2019/04/25/pop-culture-shift-nike-forays-into-crypto-as-technology-continues-going-mainstream/
http://tsdr.uspto.gov/documentviewer?caseId=sn88394295&docId=RFA20190423084525#docIndex=0&page=1
https://www.btcwires.com/c-buzz/is-nike-planning-to-enter-the-crypto-field/
https://www.ccn.com/nikes-surprise-crypto-play-could-steal-facebooks-thunder
https://www.coinspeaker.com/facebook-own-cryptocurrency/
https://www.coinspeaker.com/facebook-cryptocurrency/
https://www.coinspeaker.com/jpm-coin-jp-morgan-worlds-first-cryptocurrency-by-bank/
https://www.coinspeaker.com/vkontakte-launching-crypto/
https://www.coinspeaker.com/samsung-blockchain-coin/
https://www.coinspeaker.com/kurt-russell-alexis-bledel-beau-knapp-star-cryptocurrency-movie-thriller-crypto/

Facebook to Launch “GlobalCoin” in 2020!

If you like what you read, feel free to share it:

Today, Friday, May 24, BBC posted a large article about Facebook’s plans on launching their cryptocurrency. Rumours say its name will be “GlobalCoin” despite earlier speculations of Facebook Coin and Libra coin. 

Released in a Dozen of Countries by Q1 2020

Facebook is planning to set up its digital payments system/platform by the beginning of 2020. Internal tests will start at the end of this year. Also, the report says that the company’s CEO Mark Zuckerberg has met with the governor of Bank of England to seek advice. More importantly, to discuss the risks that are involved with such a move. Moreover, there also have been talks with the U.S. Treasury and different payments companies. Facebook seeks funding from Visa, Mastercard, and Western Union for its fiat-backed cryptocurrency.

Facebook previously revealed that their cryptocurrency will be a stablecoin which will be backed by multiple fiat currencies, including the USD, EURO, and Japanese YEN.

Project Libra

Project Libra is the name of the whole initiative by Facebook to launch this payment system. Referring to this, earlier this month, Facebook launched a new entity in Geneva called “Libra Networks”. This entity will provide financial and technology services and develop related hardware and software. This was published on the Swiss registration.

This project is set out to help billions of Facebook users/people to transfer money without the necessity of a banking institution. However, there are very few details on this issue. Facebook said that they expect to reveal more in the upcoming months.

Can Facebook take over the whole cryptocurrency market? Facebook has a total of 2.4 billion monthly (!!!) users, while crypto has around 30 million. Of course, that is the traceable data. It could be a lot more, considering the amount of privacy coins and features within multiple cryptocurrencies, including Bitcoin. 

Source:

https://www.bbc.com/news/business-48383460?intlink_from_url=&link_location=live-reporting-story