Why Do Facebook Need A Coin If AliPay And WeChat Are Successful Without One?

Why Do Facebook Need A Coin If AliPay And WeChat Are Successful Without One?

Facebook will release a cryptocurrency later this year that will allow WhatsApp users to send money instantly. Project Libra is definitely uncharted territory that raises a number of important theoretical questions about the viability and application of their stable coin, the Global coin.

Yes, you heard it right. Facebook is into Crypto; whod have thought this possible a few years ago? The social media giant is in talks with the U.S. Commodity and Futures Trading Commission (CFTC) over the stable coin. Facebook is looking at the regulatory landscape before committing to a full release. This is because crypto is largely in legal limbo which has damped Bitcoin adoption worldwide.

The Market For Digital Payments

In the contemporary world, global digital payment options are taking an ever-increasing share of the payment market. Cash is continually on the decline and we may very well have a future where cash will be relegated down further. Ironically, in the west users are under the leash of banks. Even in mobile payment applications like Apple Pay, the banks can still have a share of the fees. This is because these payment channels are mostly tied to users cards and banks accounts.

Mobile Payment Solutions

The rise of mobile payment options is challenging to mainstream institutions. This is because the purely mobile payment channels will cut the banks out and make transactions smoother. The rise of payment apps like AliPay and WeChat make the market change drastically. This is because these apps can remove banks and card companies from this market which is worth tens of billions of dollars annually.

WeChat and AliPay are trailblazers in this sector. The two essentially dominate the payment industry in China with low cost faster solutions. The ability to receive and send payments using your phone is obviously an advantage. People in China have easy solutions and commerce is better and more efficient with mobile payment solutions.

Facebook Priorities

Bitcoin has definitely had a hard time introducing mainstream consumers to the alternative world of digital coins. Therefore, Facebook will seek to succeed where Bitcoin and other altcoins failed. Obviously, impeding crypto has not succeeded because of limited market understanding and regulatory hurdles. Naturally, Mark Zuckerberg and co. would go for the more exciting innovation. Cryptocurrency success can be attributed to Facebook and take a fledgling innovation back on top. That said, the idea of market efficiency should not elude innovators and developers.

If Facebook is looking at an alternative payments solution, why not study the model of AliPay and WeChat? The American payments market is ripe for mobile payments solutions takeover. Mobile payments, as it has shown in China, are a convenient and lucrative option.

Facebook can launch a separate digital payment option for mobile that is not necessarily blockchain-based. This would arguably be more convenient for the social media giant. Indeed, it would be unwise to get into the crypto market simply for the sake of having a share in the crypto market. Facebook should, therefore, launch a coin that will definitely improve the whole crypto industry. Otherwise, it should look at and replicate other payment options in the market.

The post Why Do Facebook Need A Coin If AliPay And WeChat Are Successful Without One? appeared first on Ethereum World News.

05.06.2019 / 03:10 29
Facebook Talks ‘GlobalCoin’ With CFTC (While Bitcoin Never Had To) Facebook Talks ‘GlobalCoin’ With CFTC
Facebook is reportedly in talks with US Commodities and Futures Trading Commission regarding the future of its GlobalCoin ‘cryptocurrency.’ Facebook
Will Ripple’s Drive for Mass Adoption Receive A Boost from Facebook’s Globalcoin? Will Ripple’s Drive for Mass Adoption
A report from Binance released on the May 15th, 2019 is pointing to the increased interest multinationals, and business conglomerates are showing
Facebook Launches Swiss-Based Startup to Develop Its Crypto Facebook Launches Swiss-Based Startup
The social media heavyweight has recently set up a company in Switzerland to focus on its stablecoin and blockchain-based payment system Citing a
Facebook Seeks Partners to Back Its Crypto Payments System: Report Facebook Seeks Partners to Back Its
Mark Zuckerberg keeps working on his idea regarding Facebooks crypto payment service despite the privacy issues it has had in the past A report by
Dash Text Integrates in Telegram, WhatsApp Bans Crypto, Waiting for ‘Facebook Coin’ to Arrive Dash Text Integrates in Telegram,
The popular crypto payment service that uses Dash is now integrated in the Telegram app in Colombia and Venezuela, which greatly expands the Dash
Is Facebook About to Battle Telegram With its own Cryptocurrency Launch? Is Facebook About to Battle Telegram
The crypto token race is on between the worlds internet and messaging monopolies. Telegram already has a head start with a successful multi-million
Comments (0)
Add a comment
Comment on