Facebook + Bitcoin = Facebit: Inside the new Facebook cryptocurrency
The New York Times broke a story about Facebook’s new cryptocurrency, which is being developed in a top-secret office that’s only accessible with high-security clearance. Although Facebook has not spoken publicly about the project, and the new token does not have a name, let’s call it “Facebit.”
Facebook + Bitcoin = Facebit.
This is a momentous piece of news. Talk about widespread adoption: Facebook’s reach is so vast that “Facebit” may become a new global currency overnight, on par with the dollar and the euro.
According to multiple people both inside and outside Facebook who were briefed on the project, here’s what we know.
It’s a stablecoin. “Facebit” will be a stablecoin pegged to the value of several different currencies. (Read our top-rated piece on stablecoins here.) This means its price won’t fluctuate, like bitcoin—but it won’t be tied exclusively to the dollar, either.
It’s a very big, very secret team. Over 50 engineers are working on the project, which is highly confidential, requiring special keycard access to enter the building.
They want to trade it on exchanges. The Facebook team has had discussions with digital exchanges on listing “Facebit.” This implies it’s not tied exclusively to Facebook, but rather as a real currency that can be bought, sold, and traded.
The estimated launch is Q2 2019. In discussions with exchanges, Facebook has indicated they plan to launch in the first half of 2019 (read: this summer).
It will be at least partially decentralized. By partnering with exchanges, Facebook is signaling that it will not be tightly centralized. And by using blockchain, Facebook is signaling this is not an “in-game currency,” accessible only to Facebook users.
A New Kind of “Supermoney”
You can imagine Mark Zuckerberg’s exasperation: his company is under fire from governments, while governments use his company to spread state propaganda. You can understand why he might be ready to work outside the government altogether, to form a new kind of “supermoney.”
These are the most confusing questions Congress asked Zuckerberg
Here’s why this is significant for bitcoin investors.
A new digital payment standard. The “Facebit” could be first used for payments within Facebook, but eventually as the currency that you use to buy anything online. What we’re describing is not just a payment system like Apple Pay or Venmo—it’s an actual currency that can be used instead of dollars.
A new global economic power. By creating a new Facebook cryptocurrency, Zuckerberg is giving traditional government-owned currencies a run for their money. And by pegging it to a basket of foreign currencies (not just the dollar), he is diversifying his risks.
A user-friendly cryptocurrency. The challenge for digital currencies is making them so easy that your grandfather can use them. Given that your grandfather is pretty much the target Facebook demographic, “Facebit” may open the floodgates of digital currency to grandpas everywhere.
Who would have thought that Facebook, with all its centralized power, could emerge as the new model of decentralized payments? Blow the dust off your Facebook account, because it might just emerge as the new face of blockchain.
Source: https://www.bitcoinmarketjournal.com/
Perfect Money/Payeer/Epay/Neteller/Skrill: www.ituglobalfx.com.ng
