Facebook’s Global Coin Is Coming, and It’s Got Some Pretty High-Profile Backers By David Cullinan

With news that Facebook’s ‘Global Coin’ is due for launch next year, there has been much discussion about how the social media giants foray into the crypto world would transform the industry.

Facebook’s Global Coin

One thread of discussion includes the notion that Global Coin will help usher crypto into the mainstream in ways that other coins simply haven’t been able to do. Over the past few days, there had been rumblings that not only was Facebook coming to crash the party, but they were bringing some of their friends as a backup as well.

A report by The Wall Street Journal has suggested that these claims aren’t far wide of the mark, and those high-profile backers will include such household names as Visa, Mastercard, Uber, PayPal, and Stripe, all of who are rumoured to be investing somewhere in the region of $10 million apiece.

One crypto to rule them all

Depending on who you listen to the Global Coin is either going to be the best thing that’s ever happened to crypto, or the worst. There doesn’t seem to be any real middle ground.

A lot of the doubt appears to centre on the idea that Facebook would be looking to seize control of the crypto space, and if we’re honest, can you blame people for thinking that way?

Reports suggest, however, that the $10 million investment that the companies mentioned above are looking to make would be made to an entirely separate organisation that will be tasked with running the Global Coin currency.

Codenamed project Libra, this is being looked at as potentially a sign that Facebook won’t be running things all on its own, and that there will be other major tech players with a say.

There was also a report last week that claimed Facebook was looking to try and enlist up to 100 other organisations to effectively act as “nodes” within the network.

This will, in theory, serve to limit the ability of any one entity, including Facebook, from having control over the digital currency.

Will this signal a new beginning? Or the beginning of the end?

How this will all play out is a mystery to most at the moment, simply for the reason that there is no precedent. Crypto’s relatively short history is littered with mysterious developers, crazy, foul-mouthed geniuses, bitter splits and disagreements, all sprinkled with a serving of volatility and extreme peaks and troughs.

The idea that one of the largest, most successful entities on the planet would look to get involved, bringing with them a slew of prominent, recognised names flies in the face of everything we’ve ever seen from the crypto space.

One thing that Global Coin will bring is a healthy shot of credibility. An industry that has previously been laughed off by many so-called experts and financial titans will suddenly have a collection of financial heavyweights in its corner, which may help to wipe the smirks off certain faces and change some outdated opinions.

But at what cost, though? This is a question that’s been asked since Facebook announced their intentions, and according to reports, we’ll all know a bit more when a formal announcement is made next week.

Exciting times ahead for sure!

David is a writer with over five years of experience. His work can be seen in Yahoo Finance, CCN, Crypto Disrupt, and other tech outlets.

Specialist subjects include finance and tech, with a particular focus on blockchain and cryptocurrency, but experience in tech analysis, review and commentary, market analysis and also working in an advisory capacity for tech start-ups.

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