Facebook is set to formally announce its cryptocurrency on June 18. Other tech giants are undoubtedly taking notice. How will they respond?
Facebook is betting big on the blockchain space. Although it’s been an open secret for some time now, its native ‘cryptocurrency’ will be announced on June 18. For the time being, we know only a few concrete details about the mysterious token.
For one, it will likely be called ‘Libra.’ It’ll also be a stablecoin, and be integrated into the native Facebook platform. Moreover, it will launch with 100 nodes, each costing $10M to run, paid for by any interested businesses or third-parties.
Facebook is even creating an independent institute to monitor and manage the project. These are some bold moves, and its big tech competitors are likely taking notice.
Competitors Taking Notice
Although Amazon, Google, nor Apple has formally spoken on Facebook’s digital currency, you can bet that it’s on their radar.
All of these tech companies have made major investments in blockchain technology in the past few years. Amazon, for example, has its own Amazon Managed Blockchain platform which allows enterprises to be created on top of its Amazon Web Services.
Google, as well, is applying blockchain to cloud computing, Bloomberg has reported. However, the company has stayed especially silent on the matter since it was revealed last year.
Then, there’s Apple. They’ve admittedly been the odd one out of these developments, and have proven themselves to be uncharacteristically allergic to the promise of blockchain technology. Last week, the company released a developer ‘CryptoKit’ but its focus was more on cryptography than anything related to digital assets (to the disappointment of many).
Still, other companies like Samsung are jumping in on the action as well with its Galaxy S10 smartphone being integrated with cryptocurrency wallets and digital asset protection.
The race is on over which tech giant will stand to gain the most from the growing cryptocurrency industry. By all estimates, it appears that Facebook will be able to utilize its abundant resources and notoriety to take an early lead.
Facebook Taking Risks
Amid growing controversy over its revenue model based on ads, the social media giant is now trying to create a new revenue stream. It hopes that the idea will allow the firm to enter the e-commerce sector, and even establish itself as a payment transfer service of sorts.
It’s a risky bet given that Facebook has previously tried the idea in the past with ‘Facebook Credits,’ which turned out to be a massive flop.
However, it’s clear that Facebook is feeling uncomfortable pressure from regulators and the public which is likely why it is taking the plunge into the cryptocurrency world. It’s a long-term bet which the company is hoping will save it from its current mounting controversies.
Do you believe Facebook Coin will be successful? Will other tech giants take notice and make their own native tokens? Let us know your thoughts in the comments down below.