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GlobalCoin

Facebook in Discussions with CFTC but Uncertainties Continue

Some weeks back, Facebook indicated that it was launching a cryptocurrency payment service called Project Libra. The company has had a series of talks with various e-commerce companies as well as financial firms seeking support for the payment service. The latest discussions involve the US Commodity and Futures Trading Commission regarding Facebook’s stable coin initiative: GlobalCoin.

CFTC Indicates Interest

The Financial Times reported on Sunday that Christopher Giancarlo, the chairman of CFTC, had confirmed that talks regarding the support for the stablecoin were in early stages. He added that the goal of the discussions is to confirm if the cryptocurrency will fall under the regulatory remit of CFTC. The chairman said that CFTC was interested in understanding the stablecoin better and that action could only be taken when there is an application. For now, however, no application has been made for GlobalCoin.

This news comes after the company was in discussions with US and UK government officials regarding the regulatory concerns and opportunities of Facebook’s GlobalCoin. Project Libra’s objective is to permit Facebook users across the world to transfer money.

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Too Early to Tell

Since the CFTC and Facebook are still in discussions as CFTC tries to understand the coin, the chairman indicated that it was still early to ascertain the possibility of GlobalCoin falling under the CFTC remit. However, Giancarlo indicated that if the stablecoin will get backing of the US dollar, then the possibility of it being tied to derivatives will be minimal. He further indicated that the main compliance issue by regulators will be how the company will implement and adhere to anti-money laundering and KYC measures.

Some people believe that Facebook’s GlobalCoin will be a game changer in the crypto industry, while some hold that it is such an expensive feat that won’t go far.

Featured image: DepositPhotos © bernardojbp

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GlobalCoin

Even if Facebook Launches GlobalCoin, It’s Going to Struggle: This is Why

While not official, it looks like we’re going to see Facebook’s GlobalCoin sometime soon. And yet, if this rollout does happen, new research has indicated that the Facebook cryptocurrency will struggle to gain traction.

Here’s why.

Facebook’s GlobalCoin Hits Roadblock

The most recent piece of news about Facebook’s GlobalCoin came out last week, on May 24. It was at this time that BBC, a UK broadcasting company, said social media giant Facebook plans to launch its cryptocurrency GlobalCoin next year, even going as far as saying the company plans to conduct trials by the end of this year.

But of course, this hasn’t been publicly confirmed by Mark Zuckerberg’s company, and maybe that’s a good thing.

Yesterday, May 28, Diar, a cryptocurrency analytics firm, published a research report saying GlobalCoin will struggle out the gates as it won’t gain traction because of the demographics that use the platform.

According to Diar’s research, less than half of the platform’s users are under 35-years-old. Meanwhile, the number of users above the age of 65 has more than doubled since 2012. And here’s where things get tricky: retirees may be the main demographic on Facebook, but they are also the weakest in terms of interest in cryptocurrency. With that, Diar is confident that GlobalCoin will not be enough to pursue this demographic to enter the crypto zone.

Most people recognize that Facebook is falling in popularity with younger demographics. And while that does many things for the company, a new concern will be whether GlobalCoin will be at risk because of it. And with platforms like SnapChat gaining more traction than Facebook, the platform probably doesn’t need any more problems.

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Thoughts?

Who knows, though. Maybe GlobalCoin will end up being the exact thing that was needed for baby boomers to start investing in cryptocurrencies. Or maybe not. Maybe GlobalCoin will flop. Only time will tell, I suppose.

What do you think about Diar’s research? Is it fair to say GlobalCoin will struggle because Facebook doesn’t have the right demographic for it?

Let us know what you think in the comments below!

Featured image: DepositPhotos © Shawn.ccf

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GlobalCoin

Facebook’s GlobalCoin Could be Launching as Soon as Next Year

There’s been a lot of information circulating that Facebook is moving into the crypto market. And while some of this information is outright false, other bits are true — at least, that’s what the sources say. Take today, for example. On Friday, BBC said Facebook (NASDAQ:FB) is going to roll out GlobalCoin next year in several countries.

Here’s everything we know.

Facebook’s GlobalCoin Hitting the Market Soon?

According to BBC, a London, UK-based broadcasting company, Facebook is planning to roll out its cryptocurrency “GlobalCoin” in 2020. The online media giant, according to the BBC report, will launch the crypto-based payments system in roughly 12 countries by Q1 2020. And while that might seem far away, BBC also said Facebook plans to commence trials by the end of 2019. That and Mark Zuckerberg’s company has also already gone to the U.S. Treasury for advice.

More details about GlobalCoin are expected to be announced in the coming months. And while the world does need these additional details — the influence Facebook has on the world is huge, so the possibility of the company moving into crypto is extremely significant — Facebook seems to already be benefiting from the BBC report. Well, maybe not benefitting, but at least FB stock didn’t plunge after the report on GlobalCoin came out.

According to Yahoo Finance, as of 3:44 PM EDT, FB stock is trading at $181.19; this puts FB stock up 0.18%.

Takeaway

As mentioned, Facebook launching its own cryptocurrency is massive. Companies like Facebook and Amazon are constantly moving into different sectors of the market successfully, and the launch of GlobalCoin in a dozen countries would be yet another example of this. 

What do you think, though? Should Facebook launch GlobalCoin? If so, which countries should gain access to the cryptocurrency?

Let us know what you think in the comments below, and don’t forget to follow along with this story in the coming months! 

Featured image: DepositPhotos 

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