Caitlin Long makes 6 predictions about Facebook's upcoming cryptocurrency

09 Jun, 2019
by David Borman
Caitlin Long makes 6 predictions about Facebook's upcoming cryptocurrency

Today Caitlin Long published an article for Forbes in which she laid out 6 predictions about what the outcome of Facebook's upcoming GlobalCoin launch will be. In general, she feels the new asset will push regulatory discussions further forward, and also be a long-term benefit to Bitcoin.

The predictions cover a variety of issues that could pop up after this new asset is launched, and are as follows:

1. Facebook’s cryptocurrency will be a powerful force for good in developing countries, which is where Facebook intends to market the product.

Because the asset will plausibly be more valuable than the local fiat in many developing countries, it could lead to greater economic prosperity for the citizens in those markets.

2. Facebook will pay interest to holders of its cryptocurrency, and this will eventually lead to populist calls to repeal corporate subsidies to banks at the heart of the US banking system.

Essentially, if Facebooks doesn't kick back the interest generated from this asset, it could lead to a large public outcry as presumably the heads at the company would simply be pocketing this money.

3. Facebook’s foundation will grow to garner big power in global capital markets.

Since a foundation will govern Facebook and the issuance of its token, this foundation will likely grow in power in capital markets, essentially acting like a bank to determine the balance of its money supply.

4. Facebook will face regulatory uncertainty—which will shed light on many outdated financial regulations in the process.

GlobalCoin will run the risk of being labelled a security, as many other tokens have, and if it isn't it will raise its own questiions.

5. Facebook’s regulatory reporting program will open all kinds of interesting discussions.

Not only is the security issue up for debate, but this could open up more discussions around the company, like how many of the 2.3 billion users are real, and now issues of data privacy and ethical data mining will be extended to actualy money.

6. Facebook’s cryptocurrency will turn out, in the end, to be a Trojan horse that benefits Bitcoin.

Much like how in Venezuela, the attempt to release a national crypto simply made more citizens aware of the digital assets and subsequently the nation saw a rise in Bitcoin use, it is possible something similar will happen here. Facebook may be a great platform for reaching a wider audience, but if/when that audience realizes that Bitcoin is far superior, it may cause an unintended exodus from GlobalCoin back to traditional cryptos.

The forbes article is worth a read, as it goes further in depth into all of these issues. Still, it should be interesting to see what happens when GlobalCoin finally hits the stage!

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