Mark Zuckerberg as the world’s banker? Think about that for a moment. With Facebook creating its own digital currency that doesn’t seem far fetched. The New York Times has reported that Facebook is indeed creating its very own crytptocurrency that would be used on its WhatsApp. That app can be used to facilitate transactions among users and with Facebook’s Messenger, Instagram combined with WhatsApp there are over 2.7 billion users that could be “banking clients.” So, if Facebook goes ahead with plans to back its cryptocurrency with a basket of global currencies it would be the biggest central bank in the world. By the way, that is what central banks really do; print money backed by foreign reserves.
Not to be outdone, rivals Telegram and Signal are sniffing around that idea as well. Apple and Google next? Say goodbye to Visa and MasterCard too. Now, a name; FaceCoin? TokenFace? Read more below.
Bill Taylor/Fintek Capital
“According to The New York Times (NYT), Facebook is creating its own cryptocurrency. It would be used on WhatsApp, which Facebook owns, to facilitate transactions between users.
Facebook’s move is clearly to counter the threat from up and coming messenging rivals Telegram and Signal. NYT said that the Facebook secret effort to build its own cryptocurrency “started last year after Telegram raised an eye-popping $1.7 billion to fund its cryptocurrency project”.
Between Messenger, WhatsApp and Instagram, which Facebook owns, there are a collective 2.7 billion users. If Facebook decides to back the value of its own digital with a basket of foreign currencies, then it could potentially become the largest central bank in the world — because that’s what central banks do; print money backed by a basket of foreign currency reserves.
Not only will this become monumental in world economic history, it is also going to become a serious and rapid threat for the existing giants of the finance industry.
Bye bye Visa and MasterCard
The two largest credit card companies in the world are Visa and MasterCard. They provide us with the ability to transact without carrying cash. They then settle those transactions with our banks.
If Facebook issued its own digital currency, and all its users had a Facebook mobile wallet with Facebook coins in it, then the need for credit cards will diminish more and more…”