Facebook's Cryptocurrency To Drive Mass Adoption?
If you have even a little bit of exposure to the crypto world, which if you're reading this I'm guessing you do, you might already have read several news articles over the past few months about Facebook's plans to enter the crypto sphere.
While this has sparked some hot debates among enthusiasts about the good or bad role Facebook may play or whether their cryptocurrency should even be called a crypto given that it is most likely to be a centralised coin, and so on, I personally think that a corporate giant such as Facebook could serve an important purpose.
Right now, the markets look like they are on the verge of another raging bull ride that could last for more than a good two years and this means that even more new people will make their entrance to the crypto world than ever before. Perhaps more than all the new users in the previous market cycles combined.
As such, Facebook's cryptocurrency, which is rumoured to be a stablecoin, could actually be a boon in many regards, which is exactly what a nascent space like ours needs at the moment.
Yes, that's what the project is rumoured to be called right now and in the past few months, Facebook has been hiring developers and executives from different companies aggressively to build their crypto project, a stablecoin.
If you're not aware, a stablecoin is a cryptocurrency whose value is pegged to that of a dollar and hence it can always be exchanged at a $1 value. There are already many stablecoins out there like Tether, USDC, TUSD, etc.
Where Facebook really adds value, in my opinion, is getting the masses onto the crypto train and in a way where it will be easy for them as well as safer. We all know that there is a lot of risk involved in the crypto space and that has a lot to do with the volatile nature of this market and a lack of good, consumer friendly UI and security features.
No lay person wants to handle a plethora of different private keys, hardware wallets, exchanges and so on and understands the clunky UI that is prevelant right now. So, Facebook, with its humongous amount of resources and experience in most of the areas I mentioned can really help the 'normies' with their first interface to the world of crypto and they could do it in ways that are intuitive for the users.
From there on, the users could slowly try and understand this space in a deeper way and widen their horizons. Like getting into bitcoin, ethereum and others for example.
As for centralisation and what dire effects that will have and the dangers of even more control in the hands of the Facebook, it remains to seen how that will all play out.