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Facebook plans cryptocurrency debut

techcrunch.com

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Re: Facebook plans cryptocurrency debut

#251

Post by anonymous5133 »

mountainofdeath wrote: post #234

So it's a cryptocurrency that's basically the equivalent of a gift card or Chuck-E-Cheese token? How is this different from in-game currency that isn't backed by Crypto? Seems that FB is just riding the buzzword wave.

Yes but it can still be useful. Facebook is basically planning to compete directly with amazon in ecommerce space. In the future, you won't even have to leave facebook to buy something. The merchant will be able to process orders directly through facebook.

Also my guess is informal trading markets will form using this facebook currency. If everyone is using the same form of payment then cross boarder trade becomes much easier. No more foreign exchange hassles. I've already seen it happen with stuff like amazon gift cards but recently amazon removed the ability to check the balance of amazon gift cards. I have already moved away from accepting amazon gift cards for this very reason. If facebook's coin is widely used and can be used to buy a lot of different stuff then I would definitely shift my informal trading to the facebook coin.

Re: Facebook plans cryptocurrency debut

#252

Post by TazeTSchnitzel »

jacobush wrote: post #117
giaour wrote: post #57

From Facebook's perspective, the advantage is that everyone has already forfeited any expectation of privacy wrt financial transactions, since they're recorded on a public ledger. They would be able to link certain transaction events (i.e., ones that happen over Messenger or other Facebook properties) to real identities, so this project will give them tons of data to mine

This made me a little sick to my stomach. I thought I was jaded, but imagine the worlds economy running in FB.

They probably want to be the West's WeChat.

Re: Facebook plans cryptocurrency debut

#253

Post by TazeTSchnitzel »

jshowa3 wrote: post #204

A cryptocurrency that violates one of the main tenants of cryptocurrencies. The fact is doesn't require a centralized authority. This is basically Twitch bits and shouldn't be classified as a cryptocurrency. As others have stated, probably the only reason to use one is because an existing blockchain can simply be used under a new brand.

It's PayPal or Venmo or whatever existing money transfer service you like, but with Facebook Dollars.

Re: Facebook plans cryptocurrency debut

#254

Post by roywiggins »

steveharman wrote: post #239
buzzerbetrayed wrote: post #183

Earlier quoted context omitted.

But using a database as a ledger would clear faster than even the fastest blockchain, wouldn’t it? Or am I misunderstanding what you mean by “clearing”. I’m assuming you mean how long it takes for person A to get money to person B.

Can't a database be potentially breached and suddenly my account has all the "currency" copied I to it from yours? Until Quantum Computing comes of age, this is theoretically much harder with DLT / blockchains.

Blockchains can (and quite often do) have bugs in their implementation too, they're not entirely magic.

Re: Facebook plans cryptocurrency debut

#255

Post by TazeTSchnitzel »

stephen_g wrote: post #100
cs702 wrote: post #88

Ultimately, the goal seems to be "one currency to rule them all." The peg may prove necessary only initially, to gain confidence. Unlike most other currencies, Facebook's new currency will be readily available to and easily usable by virtually everyone everywhere, and it will likely have very low transaction costs -- much lower than those of most financial intermediaries. You will be able to use it as easily from New…

> Why use traditional nation-backed money when you can click a button on your phone instead? Wait, you can't do that with your nation-backed currency? In Australia, I can literally open my bank app and send money to any Australian account with just a phone number and they receive it in 30 seconds or so with no fees... Yeah, international transfers are a little harder, but for domestic transfers it's super easy.

It's not like there isn't already tons of innovation in the fast-international-transfers space. PayPal is one and has been around for years. TransferWise is newer and direct-to-your-account.

Re: Facebook plans cryptocurrency debut

#256

Post by panic »

InvisibleCities wrote: post #156
will_brown wrote: post #99

Earlier quoted context omitted.

>Can anyone explain what the point of a pegged cryptocurrency is? What was the point of arcades taking your quarters and issuing you tokens for the machines? Why not just allow the machines to take your quarters? The idea is for the issuer to take real money from you and issue you Monopoly money which the issuer can track and control. In a worst case scenario the issuer can make up new rules (change their terms and c…

But that doesn't really answer the question being asked. If the cryptocurrency is completely controlled by a centralized authority who has absolute rights over the system, why bother with the technical and cognitive hurdles of using a blockchain? A standard ledger in a centralized database is more than adequate for that task, and much easier to maintain.

It puts their currency in the same semantic basket as Bitcoin and Ethereum. The effort to give these other currencies legitimacy also gives Facebook’s currency legitimacy; many people who support these other currencies will also support Facebook’s. If Facebook’s currency is attacked, it becomes (in some sense) an attack on all cryptocurrencies.

Re: Facebook plans cryptocurrency debut

#257

Post by roywiggins »

nicky0 wrote: post #193
callmeal wrote: post #59

Earlier quoted context omitted.

>Do you think it's as easy for those in India, China, or Kenya, for instance? Actually yes. Take a look at xoom.com and it's competitors for example (flat rate money transfers at a fraction of swift fees). Only issue is getting money out of those countries. But that is a political and national issue.

And how about Venezuela? Or for people without a bank account?

Western Union will let you put physical cash in someone's hand from across the world if you are willing to pay their fees.

Venezuela barely has a functioning electrical grid, so cryptocurrency would not seem to be a foolproof solution there.

Re: Facebook plans cryptocurrency debut

#258

Post by retiredcoder »

literallycancer wrote: post #71
wcoenen wrote: post #64

Earlier quoted context omitted.

This was to move money between trading accounts. I don't think these new nimble "mobile" banks offer stock trading accounts just yet. edit : also, those banks are UK ones. I'm not inclined to open accounts there with Brexit going on. Foreign accounts are also a pain for tax admin.

Where do you live that you have to report you own foreign accounts? Asking companies to report them might be justified, but individuals?

genuinely asking, why would not be justifiable? That is tax on personal income and capital gains just like any other.

Re: Facebook plans cryptocurrency debut

#259

Post by jsnider3 »

brokensegue wrote: post #159
dmix wrote: post #122

Earlier quoted context omitted.

Plus the regulatory checks can be limited to cashing out and converting the coins to fiat. Instead of within each geographic or existing regulatory boundary within the network.

Is that actually true?

Depends on how good Facebook's lawyers are.
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