Andreas Antonopoulos: banks should be worried about Facebook's GlobalCoin

12 Jun, 2019
by Richard Allen
News
Andreas Antonopoulos: banks should be worried about Facebook's GlobalCoin

One of the world’s foremost experts on all thing Bitcoin and blockchain, Andreas Antonopoulos has predicted that the introduction of Facebook’s upcoming cryptocurrency, GlobalCoin will provide banks with stiff competition.

While responding to a viewer’s concern regarding GlobalCoin’s potential impact on Bitcoin, Antonopoulos jokingly states he’s sold all his Bitcoin to buy GlobalCoin. He goes on to state that GlobalCoin won’t be a threat to Bitcoin because fundamentally it isn’t a cryptocurrency. Centralized organizations like Facebook lack the five pillars (open, public, borderless, censorship-resistant, neutral) needed for an open blockchain.

“Anything that’s created by a centralized organization that is subject to specific laws cannot achieve any of these five pillars. And the reason they cannot achieve is because the law prevents them from doing so.”

Antonopoulos then states that regulated companies are restricted by the Office of Foreign Assets Control’s (OFSC) list which prevents companies from transacting with sanctioned entities like countries, people and businesses.

Additionally, regulated entities are required by law to identify who the senders and receivers are and where they are through documentation like KYC and AML, which essentially turns these organizations into a bank.

“They are not a cryptocurrency, they are a bank [...] So, banks should be really scared because when technology companies start playing in banking, and they have all of these users, and all of this experience in technology, that creates real challenges for banks.”

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Read more about: Andreas M. Antonopoulos

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