Fixing of Important Issues on Facebook
Mark Zuckerberg, CEO, and co-founder of Facebook conveyed his interest in cryptocurrency and its possible applications in 2018, in a statement issued on Thursday. Zuckerberg’s personal challenge for 2018 was to fix Facebook.
Cryptocurrency was mentioned as a passing note as an example of technology that disperses authority. That not being the only reason, it could also help Facebook get closer to its Asian messaging opponents concerning online payments. In China, paying with WeChat Pay and AliPay has made purchasing so easy, cash has almost become nonexistent. Even beggars on the streets of China are asking for mobile payments via QR codes into their bank accounts rather than actual money.
WeChat and Alibaba hold the majority of the market share for e-wallets at 92% in China, with an estimated half a billion mobile payment users. The rest of the world, as a whole has approximately 556 million mobile payment users, according to CGAP, a finance industry consortium.
In contrast, Facebook’s payments haven’t advanced as much. Users can link their Messenger account to their debit card, and send money via a quick message, or purchase online via Messenger or Marketplace on Facebook.
Facebook’s Way Forward in Digital Currency
At previous F8 developer conferences, Facebook has mentioned that it will be expanding its payments business to include bill payments and investing, services AliPay and WeChat Pay have been offering for years already.
According to the CEO Mark Hojgaard of Coinify, a technology firm that assists businesses to incorporate payments through crypto, “It definitely makes sense for Facebook users globally to send some kind of token to each other. This could be currency or something else like points that you can redeem them for things within the Facebook ecosystem, like premium content.”
For now, China has banned Initial Coin Offerings (ICO’s) and forced all local cryptocurrency exchange companies to close. With this in mind, Facebook could get a head start on its competitors abroad by building a crypto wallet or even possibly a Facebook coin quickly.
On closing, below is a portion from Mark Zuckerberg’s post on Facebook regarding Cryptocurrency.
With the rise of a small number of big tech companies — and governments using technology to watch their citizens — many people now believe technology only centralizes power rather than decentralizes it.
There are important counter-trends to this –like encryption and cryptocurrency — that take power from centralized systems and put it back into people’s hands. But they come with the risk of being harder to control. I’m interested to go deeper and study the positive and negative aspects of these technologies, and how best to use them in our services.