Facebook Coin is old news as of now. So is the concept of a stablecoin. What continues to surprise most crypto investors, however, is the cycle of developments that are gradually coming to light related to the actual work that’s being done of the project.
First and foremost, to understand what Facebook Coin’s trying to be, you need to understand just how many users the social media giant has at this point. In general, the answer likely lies somewhere between 2-3 billion. On top of this, they’re trying to both retain and gain more users in the face of continuing controversy related to how they handle user data.
In an overarching sense, it appears that the future Facebook Coin ecosystem might be an alternative payment network to that of Visa, Mastercard, and the other credit and debit card giants. On the other hand, since Facebook is reportedly working with Visa and Mastercard to develop its’ network, its’ easy to argue that the Facebook Coin ecosystem will be more of an augmentation to what is already there.
According to CoinDesk, one particular analyst from Barclays has already jumped the gun and predicted that the Facebook Coin ecosystem will add between $3-$19 billion to the company’s overall revenue in the next two years. Generally, it seems that any prediction like this one is made with the assumption that all or most of Facebook’s users will be immediately willing to use a native cryptocurrency on the platform.
Even so, with past failed projects like Facebook Credits in mind, this does not exactly have to be the case. For Facebook Coin to succeed, it will not only have to hold real utility, the platform’s user base will also need to be adequately educated on what cryptocurrencies are and why they are important to our future.
Since the latest reports on the subject still seem to indicate that India will represent the testing ground for the ecosystem, in effect, all hope for the project’s long-term success rests in attaining and retaining the interest of that particular population. Finally, since Facebook Coin may apparently also be enabled for online purchases outside of the platform, it is likely that this capability will be enabled by the existing networks of Visa and Mastercard. If this proves to be the case, it is easy to question just how “crypto” Facebook coin will be.
By: BGN Editorial Staff