Facebook Cryptocurrency Is Looking to Replace Banks; Not Bitcoin
If you have followed the news about cryptocurrencies, then you surely know about the measures taken by Facebook to release its own cryptocurrency called Libra. By designing and developing its cryptocurrency, Facebooks intends to create a more stable method for financial trades. If Facebook and its stablecoin find their place among people, they will also be used in international financial operations and transactions. But in this midst, there are worries as well. In fact, given a large amount of data that Facebook gets from users, it will learn enough about users with respect to their relations, interests, and financial matters. This seems rather dangerous, doesn’t it?
Will Facebook Cryptocurrency Replace Bitcoin?
The truth is that the worries that are expressed about the Facebook cryptocurrency are not really founded in reality. What is the reason? The fact is that the stablecoin of this company does not work in the same way as Bitcoin. It means that it will not operate in an infrastructure like Blockchain that is completely decentralized, and its infrastructure does not have the features of decentralized infrastructure. Facebook and all the famous companies that support it and have invested in this stablecoin are somehow present in all transactions and act as a middleman that observes and controls matters. All these companies work under the purview of law, and any kind of operation and decision making should be based on the law and present mechanisms. Therefore, in practice, Facebook’s stablecoin will not work in the same way as Bitcoin. If we are to consider Facebook cryptocurrency as a replacement for something, we should focus our attention on banks. Maybe the infrastructure in which Facebook’s stablecoin begins its work is a replacement for banks in the matters of financial transfers.
What Are the Long-term Plans of Mark Zuckerberg for Future?
Based on the remarks by Mark Zuckerberg, in the near future, stablecoins like the stablecoin of this company will be able to transferred via messaging services like WhatsApp. Such an outlook is completely doable, and with its advent, banks should have a new idea to further their activities and survive. Such an infrastructure for making financial transactions and for economic relations will be a tool that ends the reign of the concept of the middleman.
Cryptocurrencies want to operate in a completely free infrastructure in a world without boundaries and control. But apparently, the stablecoin of Zuckerberg does not have this feature and is more looking to establish a centralized system without middlemen that can affect the speed and quality of financial transactions. It is believed that Steve Jobs wished for every kid to have a small computer in his/her hands. We are seeing the result of this wish in recent years. Tablets are the realization of a wish that years ago, Steve Jobs had in mind. Therefore, Mark Zuckerberg’ wish is probably not far from reach. He wants everyone from any corner of the world to be able to track his/her financial transactions easily with the help of a messaging service on his/her smartphone. It seems that this outlook is not that far from us.