On 18 June 2019, Facebook will possibly release the whitepaper for its cryptocurrency speculated to be called ‘Global coin‘. The hype surrounding the yet-to-be-launched digital asset alone says a lot about how fast and successful its early adoption would be.
The brand backing the Global coin is more than enough to push it through whatever achievements it seeks to come out with. However, everything seems not to be alright. The introduction of the Global coin would affect some existing cryptocurrencies and will only favor Bitcoin and a few of them. One of such coins is XRP.
Firstly, What will Global Coin seek to Achieve?
The Facebook coin is said to be launched with the people from the developing countries being the center of its purpose.
With regards to the high inflation rate in such countries like Venezuela and the high record of remittance rates, Facebook coin seeks to provide a free and fast peer to peer transaction to take away this burden.
Its purpose of taking advantage of the opportunities existing in the poor countries will see to it that there is a cheaper cost of transaction as well as a faster time of transaction. These two key elements of the Global coin will do a lot of harm to XRP.
XRP was majorly made for the banks, so without the banks, this cryptocurrency would be less useful. Its major role is to help solve the higher remittance fees which exist, for instance, in the developing countries. Though Ripple is profit oriented, the whole purpose of its existence is to be a good service to the banks.
Now comes a cryptocurrency, hyped before its launch, and already has millions of interested users who may possibly join its early phase, and provides almost the same service as XRP.
A number of experts including Charlie Shrem, the founder of Bitcoin Foundation has expressed a similar concern of the Global coin making XRP useless. According to him, Facebook intends to pay $10 million to companies to become validators, and this alone will make XRP ineffective. Max Keiser, a cryptocurrency expert also Tweeted that the introduction of the coin will drive the Bitcoin price higher as it renders the Altcoins irrelevant:
“ The FB global stable coin… FaceCoin obviates need for hundreds of alt-cons including XRP. The alt-coin apocalypse is nigh. This will drive Bitcoin higher, as BTC competes with Gold, not fiat. (Also, crypto ‘payments’ companies likely to wiped out).”