Facebook’s blockchain-based payment network advances fast and multiple news and rumors about the upcoming cryptocurrency project flood the industry.
Add to the story that Facebook seems determined to officially announce its crypto project this summer and we have the perfect mix of high hopes and major expectations.
Let’s try to see what we know so far.
Facebook to pay 3rd party entities $10 million to act as network validators
It has been reported that Facebook contacted various 3rd party companies, groups and organizations to become validators for its cryptocurrency network, in exchange looking to charge around $10 million.
First of all, it is quite obvious that to become a validator is not something easy to do for normal users and the offer is actually addressing well-established groups that have the necessary infrastructure and financial resources to occupy such a position.
Facebook’s blockchain project seems to look for the middle ground between a public network, like Bitcoin, and a private corporate enterprise in order to satisfy both state institutions and everyday users looking to enter into the world of cryptocurrencies. It’s no wonder that Facebook’s coin is dubbed as the “GlobalCoin”.
Facebook to pay workers in “GlobalCoin”
Another rumor surrounding Facebook’s project is related to the company’s intention of paying its own employees in “GlobalCoin”.
We have to say again that Facebook’s coin would be a stablecoin that is pegged to the US dollar 1:1, so employees should be able to exchange their crypto salaries into fiat at any moment if they choose to do so.
Related to the possibility of using “GlobalCoin” for paying wages, it is considered that Zuckerberg’s meeting with the US Commodity and Futures Trading Commission (CFTC) revolved around this subject.
100 people are already working on Facebook’s crypto project
A report from CNBC showed that around 100 individuals are already working on Facebook’s project by analyzing multiple profiles on LinkedIn professional network.
The same report adds that Facebook continues its hiring process looking to cover more than 40 job positions in various teams.
What Facebook says
If we are to follow Facebook’s job descriptions, the social media titan looks to create a public payment service that can help people get access to various benefits, like healthcare and financial services, or to better share value.
In other words, Facebook is looking to provide financial assistance to individuals from undeveloped countries that have difficulties in accessing basic banking systems.
Why is Facebook looking to do that? Simply because we know there are more people in the world connected to the Internet via a smartphone than people that have a banking account. Add into the equation the people who work abroad that have difficulties in sending money into their home countries and you have the full picture.
If you are using your smartphone to talk to your friends and family in your country via Messenger or WhatsApp, wouldn’t it be great to use the same app for sending money without going through the traditional banking system that proves much too complicated, expensive or simply lacking in some places of the world?
Facebook’s arrival in the crypto-space is heralded to be the best thing that can happen for the industry as more than 2 billion people will found themselves using all of a sudden blockchain technology and digital currencies, which is more or less mass adoption. The following weeks will be more than interesting for the cryptocurrency market.