Facebook Crypto ‘One of Most Important’ Initiatives in Company’s History: RBC Capital
Analysts from the Royal Bank of Canada’s investment subsidiary, RBC Capital Markets, have lofty expectations for Facebook’s in-development proprietary cryptoasset, known as GlobalCoin.
According to CNBC.com, analysts Mark Mahaney and Zachary Schwartzman, they think the non-public crypto “may prove to be one of the most important initiatives in the history of the company to unlock new engagement and revenue stream.” Mahaney and Schwartzman anticipate that GlobalCoin will be used for payments, commerce, and in applications and gaming.
More details of GlobalCoin – also known as “Libra” within Facebook – are expected to come tomorrow, June 18, with the release of the crypto’s whitepaper, according to an exclusive interview in a German newspaper with Laura McCracken, Head of Financial Services & Payment Partnerships Northern Europe.
The million dollar question for this coming week: which token, if any, may benefit directly from Facebook’s GlobalCoin.
— Alex Krüger (@krugermacro) June 17, 2019
It was recently reported that GlobalCoin’s operation will be handled by a nominally independent, Switzerland-based entity called Libra Networks. This move is presumably meant to distance Facebook from criticisms of centralization and monopolistic dominance.
The report also said that Facebook plans to sell the rights to operate 100 of the network’s nodes for $10 million apiece, which will have the network resembling EOS or Dash node systems. GlobalCoin will be asset-backed by a “basket” of fiat currencies and “low-risk securities from various countries,” making it essentially a stablecoin.
What does crypto think?
It may go without saying that many in cryptoasset community and industry are circumspect about GlobalCoin, given the extensive criticism that has surrounded Facebook in past years regarding users’ privacy and data ownership.
If you think that Libra/Globalcoin , the new Facebook coin will compete with Bitcoin then you missed the whole point of why we are here.
— Ran NeuNer (@cryptomanran) June 9, 2019
Crypto community heavyweight Andreas Anatonopoulos reminds us that GlobalCoin achieves none of his five criteria for being a cryptocurrency: namely, centralized GlobalCoin is not open, public, neutral, borderless, nor censorship resistant.
5. censorship resistant
— Josh Olszewicz (@CarpeNoctom) June 14, 2019
But not everyone in crypto is sour on GlobalCoin. Caitlin Long, both a finance and crypto veteran and co-founder of the Wyoming Blockchain Coalition, said in a recent Forbes article that GlobalCoin could be a “force for good in developing countries,” where local currency values will be far more volatile.
Long went on that GlobalCoin could smoke out new and more equitable regulation on corporate welfare in the U.S. (corporations dodging the tax man or otherwise reaping easy windfalls and savings), since Facebook and Libra Networks will be able to earn massive amounts of interest on all the assets parked in banks to back the token.