Facebook Reveals Ambitious New Goal to Replace U.S. Dollar With Facecoin

Author: Dylan B
Date: 
March 26, 2019
Read time: 
3 minutes

While many initially assumed that the Facebook stablecoin would simply be another cryptocurrency, Kik CEO Ted Livingston has made the prediction that Zuckerberg actually intends on making Facecoin a competitor to the U.S. dollar rather than just Bitcoin.

While many initially assumed that the Facebook stablecoin would simply be another cryptocurrency, Kik CEO Ted Livingston has made the prediction that Zuckerberg actually intends on making Facecoin a competitor to the U.S. dollar rather than just Bitcoin.

Livingston lays out these predictions in a self-written post on Medium and thinks that the main goal lies into allowing people to be able to send money to families across borders much easier.

He believes that the plan starts with the WeChat platform, which would allow users to take their stablecoins into a private messaging platform so that users would be able to make money transfers more affordable and would have added incentive to keep using the stablecoin. About this, Livingston said:

WeChat allowed people to take their money out at any time, but they also added more and more reasons for people to keep their money inside: paying hydro bills, buying food, booking vacations and more. Soon, no one was taking their money out.

Livingston then thinks that the use of the blockchain will prove transparent enough for Facebook to not have to implement a financial institution system in order to make the goal work, following up with:

Instead of working with regulators like WeChat did in China, Facebook can roll out a global financial system without needing to go through the time-intensive process of working with banking regulators country by country.

To sum up the three-pronged strategy, Livingston thinks that the final step is to make it so that there is no need to take money out of Facebook’s applications. This will ensure that Facebook is making money from the project:

New ways of spending money through the app will become simpler and more powerful than the previous alternatives. Soon, there will be no reason for anyone to take their money out.

While no one can say for certain that these are Facebook’s intentions, there would certainly be strong incentives for individuals to begin investing in cryptocurrencies given that many think they would become as essential, if not even more important, than the U.S. dollar.

Posted by Dylan B

Dylan Buckley is a writer based in California. He became interested in cryptocurrency upon discovering it in 2014 and soon started investing as well as writing for a wide variety of clients and crypto-startups in the space. When he is not producing content for individuals and businesses, he is typically working on his own self-development content or making music.

Comments

therealsha256
Ok lets discuss, given the title, immediately you’d think FB is after an ambitious effort to create a true digital currency obviously blockchain based. A somewhat centralized crypto (they would never relinquish control), a mineable coin not a stable coin as originally thought they would (again based on the alluring header), with a max quantity of X amount of coins that will ever exist. PFFFFF!!! That will never happen! It is way more likely they build their own version of a FB designated network currency. Which has much higher potential to succeed over an actual cryptocurrency, based on its 2-3 billion network participants, it can create its own unique digital economy environment (poof! mind blown). Where our fiat systems, as digitalized as they’ve become, easily can be trapped and converted in this virtual environment community and the dollar starts to dissipate (of course that would never happen, fed will just continue-to print more) and a new digital economy emerges. Eventually the token becomes interoperable and starts to mingle with other cryptocurrencies and thus the explosion of a true digital world wide economy. I see this as the much likelier scenario. Wishful thinking... FB would have a steep climb against government.

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