Facebook Coin will replace the US dollar. Ted Livingston, founder of Kik, is convinced that Facebook’s goal is not to replace bitcoin, but rather the dollar.
Famous for being good at making predictions, in a post on Medium the entrepreneur shares his point of view on the future of any coin issued by Facebook, which he calls Facecoin.
Livingston starts from his own experience with Kik and Kin, the connected integrated token and the subsequent entry of the Chinese messaging giant WeChat.
Already in 2014 he and WeChat predicted that the real business did not come so much from social sharing, as is the case with Facebook, but from the ability to integrate payment into messaging services and to integrate them privately. The success of such an initiative requires the implementation of 3 factors:
- Persuade people to transfer money via a messaging app;
- Have a tool to move money efficiently;
- Convince the public to keep the money in the messaging app through services.
WeChat has managed to activate these success factors by starting to promote the use of its messaging service to send so-called “red envelopes”, ie small cash gifts that are exchanged on holidays, such as New Year’s Eve, in the Chinese community.
The messaging app then convinced the community to keep the money on the app thanks to a series of additional services payable with the platform itself.
The potential of Facebook Coin
Facebook, integrating its messaging services, Instagram and Whatsapp, could do the same thing, but in a much more complete and effective way: in fact, on the one hand, the blockchain is a perfect tool to allow a safe and cheap money transfer, with infinitesimal costs compared to the banking system, on the other, while WeChat was bound by the regulations of the Chinese state, on the contrary the hypothetical Facecoin would not have the regulatory limitations of the Chinese counterpart, closely bound to fiat currencies.
At this point, Facebook Coin could become a stablecoin linked to the dollar or the euro, but indirectly linked to the fiat currency, just as in the 19th-century banknotes were tied to gold through a reserve ratio.
Practically the dollar would be the partial value reserve of Facebook Coin, being substituted in daily practical use. This would make Facebook Coin the currency of a community of 2 billion Facebook and Whatsapp users, replacing the dollar, the current world reserve currency. Will the US allow it?