Facebook is on the verge of revolutionizing the world of digital payments. Blockchain Capital’s Spencer Bogart shed some light on the Menlo Park -based social media giant’s foray into electronic payments, ahead of next week’s Consensys 2019.
In an interview with Bloomberg, the general partner at the blockchain-centric VC firm stated that in light of the speculated “bottom” of the cryptocurrency market being reached, several catalysts are on the horizon. One, in particular, is the Facebook Coin project, which he described as “the elephant of the room.”
From a global perspective, the Facebook Coin project is incredibly significant as it operates along the same lines as the cryptocurrency industry. Given the universal dominance of the social media giant, and coupled with its crypto-esque digital payments project, Bitcoin and the larger virtual currency market could see a ‘trickle-down’ effect.
“Facebook is significant from a global scale perspective, and even if a small percentage of those users trickle into crypto, we’re going to see a doubling or a tripling in the users base of crypto over the next couple years.”
Using the phrase “gateway drug,” Bogart stressed that Facebook’s adoption push will introduce billions to the virtual currency market. Once initial public confidence is established, using Facebook’s fiat-backed coin, users can branch out and move on to Bitcoin and other cryptocurrencies.
Bogart added that “some percentage of the user base is likely to do so,” and this could be a “dramatic catalyst” to the decentralized currency industry.
From a long-term perspective, outside the obvious adoption success, Bogart stated that the Facebook Coin project is the initiator for something that has more overarching importance. This foray has “lit a fire in the pants” of several FinTech and financial institutions in the United States, Bogart added.
Referencing the introduction of crypto-centric services by the likes of Fidelity’s digital assets wing, ETrade, and TA Ameritrade, both on the institutional and retail front, the Blockchain Capital Partner suggested that Facebook sparked these companies into action by launching their Facebook Coin project.
The messaging giant’s headquarters for this payment project will be London, in addition to a smaller office in Dublin. Given their application is more popular in the UK over the US, Facebook decided to push the project from London. However, the first target for their payments project will be India, owing to the immense popularity of WhatsApp in the country.
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