Anonymous sources are reporting that the white paper for Facebook’s forthcoming stablecoin ‘Globalcoin’ will be released on June 18.
The project, which is already generating criticism for its attempts at decentralization–in addition to analysis that suggest Facebook users will reject using crypto–is set to become official later this month. Multiple sources speaking with TechCrunch reported that the white paper will be released on June 18, following up on reports that the social media platform was officially announcing globalcoin in June.
Facebook coin’s white paper, codenamed ‘Libra,’ will explain the basics of the cryptocurrency and include more details on how the coin will be pegged to a stable value. Compared to other stablecoin’s on the market which is pegged to a single currency–such as USD Coin and the US dollar–Facebook is planning their cryptocurrency to a batch of currencies. The idea is to prevent price volatility in the event of currency fluctuation, such as if the US dollar underwent rapid depreciation.
Facebook has declined to comment on the new development for the project, however, one of the executives for the social media platform’s Financial Services division let slip the June 18 date for the white paper.
Even with the official announcement and publishing of the white paper later this month, Facebook’s coin is not set to hit the market until 2020 at the earliest. The company is eyeing the remittance market as a potential source of adoption. Given the 2 billion active users of Facebook across the globe, the company may have already made significant inroads into establishing a network for remittance.
Ripple, the parent company behind XRP, has targeted remittance and unbanked populations as a primary population to benefit from crypto adoption. However, Facebook holds an advantage in accessibility to its customer base. While not all unbanked populations may be using Facebook, the exchange does operate on a global basis and with a widely cast net of users–thereby greatly improving its chance to get users involved with the currency.
Despite Facebook’s reach, some believe that the demographics of the social media platform’s user base are not likely to use crypto. A report by Diar showed that Facebook is facing a crisis in its audience.
On one hand, the platform has a rapidly aging user base that is not likely to find crypto or a stablecoin appealing. On the other, its losing market share in younger demographics and millennials that would be more likely to adopt the technology. In addition, teen users of Facebook are more likely to be from lower-income families, which Diar reports will lead to decreased use of Facebook’s coin for transactions.
Nonetheless, the social media company has attempted to appeal directly to the crypto community, with rumors earlier in the week claiming that Facebook’s coin would distribute nodes in an attempt to promote decentralization. It remains to be seen who will be the ultimate user of Facebook’s coin, and whether the currency will live up to the hype as a potential bitcoin-killer.