Recently it became known that Facebook is supposedly working on creating its own digital currency. Give possible variants of its use, and is it possible that this will be another way of collecting user data.
According to unofficial data, social media giant Facebook may close to launching its own digital currency designed to integrate with one of the most popular instant messaging applications in the world, WhatsApp.
It is known that the division of Facebook, which is studying digital currencies and blockchain technology, is headed by the former CEO of PayPal David Marcus, and most of the work in this area remains secret, even from their own employees.
Although this news may seem interesting – in fact one of the largest technology companies considering the digital currency – and it may be the next bullish push, but it begs the question of what Facebook wants to achieve with Facebook Coin?
According to an article in the NYTimes Facebook Coin is likely to be tied to traditional currencies, which will make it steilcoom. Most likely, Facebook is going to localize the currency based on regions of the user (retaining the binding in U.S. dollars in the ratio 1:1).
Secondly, Facebook is probably going to integrate the coin into its broad ecosystem that includes WhatsApp, Facebook and Instagram. This means that users of these platforms will be able to transfer the coins, sending them to each other or using them to pay for advertising and more.
In addition to these features, we are unable to say exactly what Facebook intends to do with its own digital coins, but even such possible use does not necessarily require tokens created using the blockchain. Facebook can easily integrate your existing payment solution such as PayPal, and it will work the same.
Telegram raised $1.7 billion through pre-sale for its own digital currency, GRAM, which will control the open network Telegram (TON). But Telegram works on a full-fledged ecosystem, with various digital services such as distributed storage, proxy servers and content delivery network – this network makes more sense to own the coins than the simple transfer of funds through the application for instant messaging.
Perhaps if Coin materializes Facebook, Facebook will also move to create an entire ecosystem, in addition to social media and instant messaging, but such plans are still unknown.
Regardless of its application and usage, there are some key questions to possible Facebook Coin. First, how it will spread? There is information that Facebook is negotiating with the leading exchanges to bring the digital currency in the listing. This means that Facebook intends to give users the option to buy coins via the exchange – but if it’s steamcon, he is unlikely to be of interest to speculative investors, as its value should not fluctuate significantly relative to the binding.
Secondly, what kind of information will provide users to be able to carry out transactions using Facebook Coin? Even if users eventually acquire Facebook Coin on the exchange, it is very likely that Facebook will have to use some form of KYC, according to the rules of combating money laundering, AML, before he will be able to allow users to send coins via WhatsApp, Facebook Messenger or Instagram. This is not surprising, if you ask users to transmit even more information in Facebook (including the identification code, passport details, proof of address, etc.) before they will be allowed to transmit or receive coins on the network.
Given the fact that Facebook is not the most reliable when it comes to protecting our personal information, it raises even more questions when users will provide personal identification information, the address and possibly other Bank details (in order to redeem the coins in Fiat).
Finally, most importantly, that in a few years Facebook will have tons of data on behalf of users, their expenditures and the financial condition and activities.
It is possible that the company will use it to attract advertisers and may create filters to display ads only to individuals who pay every month a certain amount of money for something specific? This is probably one of the main purposes of Facebook.
Whether it’s the development of Cryptoprotected? Possible. Users may be more interested in exploring bitcoin and other currencies, and also to start investing or to use them, but Facebook Coin, like the JPMorgan Coin will not have a significant impact on the cryptocurrency market.
The company is already under intensive supervision in respect of its policy of collection and protection of data and issue of digital currency will probably be another method of data collection as they attempt to make the most of its users.