Finally, some of the world's largest companies are delving into encryption and related technologies. In recent weeks news has surfaced that some of the world's largest institutions at TD Ameritrade and Fidelity continue to scale to Bitcoin.
What is also important is that giants of the technology world also continue to enter the space of the cryptomoeda. While Microsoft, IBM, Samsung and Google have made good progress with their blockchain-related products, Facebook can make the biggest success yet with its own digital asset.
Related reading: Ethereum Vitalik Co-Founder: IBM Blockchain is "Missing The Point"
Get to know Facebook's Digital Assets
Finally, it seems that the details of Facebook's crypto-currency are beginning to be resolved. For those who have lost the memo, it has long been said that the social media giant is developing a blockchain product behind closed doors. Only recently has it been revealed that the said product was a cryptomeo. And only in the last few weeks detailed design details have been resolved.
As the NewsBTC reported on Friday, Facebook's crypto-currency will be called "Globalcoin," with its issuance being completed by a wholly-owned subsidiary called "Libra," which is historically crypto-friendly. Although the product was first introduced in India, new reports say that the currency will be available through WhatsApp, which has two billion active users, and will be a payment mechanism and medium of exchange for the social media ecosystem.
To get ideas and development, it was even reported that Mark Zuckerberg was mandated to sit down with Gemini's Winklevoss Twins, his colleagues who have become rivals at Harvard and other seekers of Facebook's co-founder, to talk about cryptography.
And while the launch of Libra / Globalcoin is expected in the first quarter of 2020, Facebook is growing more susceptible to such a development.
Speaking to CNBC's "Squawk Box," Mike Novogratz of Galaxy Digital underscored the importance of Facebook's immense stride in this space. The former Wall Street investor, now a well-known crypto-currency investor, said "Facebook is extremely important to the ecosystem," adding that this tacit endorsement of the technology behind Bitcoin is on the rise. He even claims that, contrary to popular belief, Globalcoin will add value to the non-centralized crypto-ecosystem, not subtract it.
– Squawk Box (@SquawkCNBC) May 24, 2019
The most important encryption company?
Novogratz is not the first to have mentioned this thought process. In a bulletin published last year, Anthony "Pomp" Pompliano, a member of Facebook's growth team who became a venture capitalist and analyst for Bitcoin, also highlighted the importance of Facebook in the blockchain.
The pomp, which went to the ends of the earth to praise the crypto-coins and the value proposition they represent, stated that consumers "should never underestimate Mark" Zucker. "Zuckerberg argued that Facebook's blockchain solutions, regardless of how they are about "building a globally dominant product that changes the way billions of people live their lives." He continued:
If the technology company is able to build the product and drive adoption, it will have the chance to transition from a social network to one of the largest financial services companies in the world. This change would allow them to take a small percentage of each transaction and reduce dependency on their advertising-based model.
This is powerful, especially considering the influence Facebook already has. As commentators such as Ari Paul of Blocktower Capital have suggested, a Facebook-supported cryptomeo could open the door to Bitcoin for millions of consumers worldwide, even though the two ecosystems do not overlap.
Related reading: do not count the Facebook encryption or the JPM currency, they could boost Bitcoin
Pompliano simply says that, because of this, Facebook is probably the most important company for the cryptomoedas ecosystem at the moment, despite what many think about institutions and (slightly) bigger names in technology.
Globalcoin distrustful detractors
Although many are confident that the launch of Globalcoin will only validate Bitcoin and its laia, giving Joes and Jills common skills and heart to immerse themselves in the cryptomeo, some are skeptical of Facebook-supported assets.
Frank Block, of The Block, reminds his followers that Zuckerberg does not take much consideration for the privacy of their users, even when Facebook was a startup. Others echoed this sentiment, noting that the product will not only be centralized and will be susceptible to censorship, government oversight, among other concerns that do not concern Bitcoin.
For those of you optimistic in Facebook's "GlobalCoin", never forget who we're dealing with pic.twitter.com/GL3qp0giAl
– Frank Chaparro (@fintechfrank) May 25, 2019