With non-financial businesses placing their bets on a crypto-powered future, goliaths such as Facebook, Nike and Microsoft are in the race to register patents and trademarks to lead the crypto-era. The social media giant, Facebook, recently made headlines for meeting the US Commodity and Futures Trading Commission [CFTC] over concretizing its crypto-stablecoin initiative, GlobalCoin. Although numerous crypto-companies have previously approached the government for mainstream acceptance, CFTC chairman Christopher Giancarlo, mentioned,“The goal (of the meeting) was to better understand Facebook’s crypto stablecoin’s potential under the CFTC’s regulatory remit.”
While Facebook’s stablecoin initiative managed to get the green light in its initial stages, the crypto-verse’s spread was crippled by tremendous resistance from key markets of the world, including India and China. In a more surprising turn of events, countries such as Venezuela have started accepting crypto to survive the fiat economic collapse.
Clearly, the world is ready and desperate for financial stability and independence (from the US) in most cases. What’s concerning for traditional financial institutions is the fact that Facebook’s GlobalCoin project, once active, would be accessible to the largest global customer base. While this would bolster the reinvention of cross-border asset transfers, Facebook would also bring new investors into the crypto-market.
The main factor for GlobalCoin’s anticipated global acceptance is its brand recognition and trust. Facebook recently amped up efforts for setting up an e-commerce presence within its app ‘Marketplace’, signaling a bigger roadmap for the crypto-future. While speculators took center stage, @Frances_Coppola tweeted,“Facebook’s proposed digital currency has nothing to do with cryptocurrency adoption and everything to do with challenging Amazon.”
Although Facebook’s stablecoin promises an increase in crypto-adoption, its widespread usage would be factored based on government acceptance. India, although leading the tech revolution, continues to restrict its banking authorities from supporting crypto, while smaller economies are being forced to adopt it. It is also important to note that the Facebook-acquired WhatsApp has over 200,000,000 users in India alone.
Despite the ban, a consistent YOY increase in India’s BTC trading volumes can be seen, signaling GlobalCoin’s tremendous potential. The new Finance Secretary, Subhash Chandra Garg, has even reportedly signaled his interest to re-discuss the status of cryptocurrency acceptance for the world’s largest democracy. As more countries adopt crypto, for better or worse, crypto is destined to redefine the existing financial structure. And, Facebook’s GlobalCoin may be at the head of this movement.