Facebook is planning to unveil this June a corporate GlobalCoin that is expected to be pegged to the dollar or a basket of currencies with details sparse as to how they’ll manage the peg.
According to The Information, Facebook is to set up an independent foundation to manage the stablecoin with this to be marketed in developing countries where local currencies may be less stable.
They are to integrate it with WhatsApp, Messenger and Instagram, with Facebook employees having the option of being paid in GlobalCoin.
For the privilege of validating what’s going on in this network, firms are to be charged $10 million to run a node.
Making this by the sounds of it a corporate currency that is largely controlled by Facebook, albeit through an independent foundation, with the public not quite having access to the network except as consumers of it unless they want to pay $10 million for the privilege.
Who would do so and why isn’t very clear. Meaning this network may well have just one node run by Facebook. In which case we hope they can secure this node in Swiss Bunkers because even there it probably will be hacked if it connects to the internet.
Much of the above however is through unnamed sources in a somewhat hyped rumor mill as Facebook gears up to debut what to many may well be the antithesis of the blockchain.
“Encryption and cryptocurrency take power from centralized systems and put it back into people’s hands. But they come with the risk of being harder to control,” Mark Zuckerberg, Facebook’s founder, said at the hight of crypto-prices.
That lack of control is obviously the whole point of it. Otherwise you just run a database that Zuckerberg can edit as he pleases.
Nor is it clear what’s the point of an entire blockchain if all this is, is yet another stablecoin except obviously control.
With all of it sounding very much like Tether, but without the public blockchain transparency, without immutability and inability to just edit how much money people have, and without accessibility through a free node that allows anyone to verify the rules of the code.
Instead it appears all we have is a database that you can access for $10 million with the privacy concerns here very numerous, but we’ll wait for the full details once they decide to launch them if they ever do actually explain fully how this system is meant to work.