By CCN Markets: Analysts at Royal Bank of Canada (RBC) Capital Markets predict that Facebook's upcoming cryptocurrency, GlobalCoin, could be the company's most significant achievement yet. In a message to investors, RBC managing director Mark Mahaney writes: “We believe this may prove to be one…
By CCN Markets: Analysts at Royal Bank of Canada (RBC) Capital Markets predict that Facebook’s upcoming cryptocurrency, GlobalCoin, could be the company’s most significant achievement yet.
In a message to investors, RBC managing director Mark Mahaney writes:
“We believe this may prove to be one of the most important initiatives in the history of the company to unlock new engagement and revenue streams.”
He goes on to say that himself and the rest of the RBC team suspect that Facebook will integrate GlobalCoin into payments, e-commerce, apps, and gaming. With the GlobalCoin launch around the corner, RBC is placing a $250 price tag on Facebook’s stock.
Whether they view it as a competitor or genuinely don’t see the value, traditional financial institutions have historically fought against cryptocurrency. JPMorgan CEO Jamie Dimon openly speaks out against Bitcoin, Warren Buffet calls it “rat poison squared,” and Larry Fink, head of BlackRock, thinks its only use is money laundering.
When the government and centralized corporations step in, though, those traditional institutions start to change their tune. Already, Facebook has convinced Visa, Mastercard, and PayPal to fork over $10 million for the honor of being part of their blockchain’s governance. Paypal, whose CFO is a bit of a Bitcoin skeptic, appears to have no qualms with Facebook’s centralized GlobalCoin.
We may see more of this type of support moving forward. Traditional banks will likely oppose grassroots, decentralized cryptos while throwing their money behind centralized and regulated alternatives. Dave McKay, President and CEO of RBC, comments on the cryptocurrency atmosphere at 2018’s World Economic Forum,
“The big financial trend of 2017 didn’t have many fans at Davos, though…That said, we should not lose sight of the utility of blockchain technology, which could be used to improve financial systems. The message from governments was unequivocal, that we should expect regulation.”
When looking at it through the eyes of a banker, Facebook’s GlobalCoin fits the bill of crypto they can support.
Big-name banks putting their money into GlobalCoin doesn’t mean that you should too. News of this overwhelming support tends to drown out the fact that Facebook is an enemy of user privacy and autonomy.
The company sold user data without permission, is constantly leaking personal information, and actively promotes censorship. Why would you trust it with your financial wellbeing?
This article was edited by Samburaj Das.
Last modified: January 10, 2020 2:57 PM UTC