Facebooks’ GlobalCoin Set to Be Crypto PayPal- Opinion

by Albert Kim
Facebook’s Digital Coin, “GlobalCoin” is launching in 2020

With the Project Libra set to go live soon, there is a lot of anticipation that the resulting Facebook coin; GlobalCoin will transform the face of online chat. The project is set to change how online goers chat. The introduction of encrypted chat monetization is set to disrupt the social chat landscape.

The idea behind the Facebook stablecoin is to monetize WhatsApp. The chat platform has more followers compared to Messenger and Instagram put together. The chat features are enticing and more users are coming onboard every other day and what’s more; it is smartphone based.

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Facebook Coin the Next PayPal for Crypto

The online payment space is getting crowded and only the best will survive. Project Libra sounds more like a crypto version of the popular PayPal. By structure, the project sounds like it is set to hit hard on PayPal but riding on the blockchain technology.

Project Libra and to some extend Facebook has hired experts from PayPal to work on the stablecoin and its resulting payment mechanisms. The project targets over 2billion subscribers and once this is achieved, it will fulfil Peter Thiel’s dream of a blockchain based global payment system.

Entry into a Lucrative Niche

A Facebook digital could be worth over $19billion in revenues according to Barclay’s. With the project hype on the rise, the project is set to launch in the Indian subcontinent in a few months according to a report by Bloomberg. The future of the social network is focused on the revenues WhatsApp is poised to generate.

WhatsApp is now getting adopted in virtually all developing countries and making steady inroads in developed ones. India and South America are the fastest growing markets for the App and with the penetration of internet and affordable smartphones; the sky is set to be the limit for the anticipated market entrant.

Facebook Coin Heading towards the Elusive Mass Adoption

The merger between WhatsApp, Messenger and other similar channels can drive the Facebook stablecoin into the advertising sector without any hiccups; a potential smooth way to connect businesses. In addition, this will make global payment future a better experience for the consumer.

The changing stance on Facebook advertising is paving way for a better way for businesses to embrace the platform and the native GlobalCoin. Whether the social network is launching a coin or blockchain, one this is very clear, it is banking on the current and anticipated user base.

Will Facebook Crypto Stand the Test?

Facebook might not provide the WeChat quality and is also not the best placed platform to pour your personal data. Unless they address the issue of user trust, the crypto option might take time to gain popularity among the current crop of users.

Compared to PayPal, Facebook payments can only create a new revenue stream which will be from the advertisers according to Ross Sandler, the Barclays internet analyst.  Surprisingly, the Facebook coin is not decentralized and this misses the point of a real crypto. However, it can be regulated and become another P2P platform to compete with the likes of Square Cash with end goal of disrupt PayPal.

Monetizing its 2billion users without the promise of advertising can be a huge threat to PayPal and Square cash. Embracing the GlobalCoin might however dim the dream of many young users who are tech savvy and looking to exploit the benefits of a decentralized economy.

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