Paul Puey, Co-founder and CEO at Edge, and I sat down for a live podcast at Consensus 2019 in NYC last week and one of the first things we talk about is the Facebook Coin.
Today in crypto news we learned the Facebook coin is going to be called GlobalCoin and that this cryptocurrency will be coming out in early 2020.
Facebook is so huge, with billions of users, about a third of the population of the entire planet, so what will this mean for crypto? And what will in mean for the value of the Facebook coin, GlobalCoin?
Reports have been saying that the GlobalCoin will be a stablecoin and Paul believes that this will have everything to do with its value as a coin.
“How valuable can a coin be that’s already pegged to something else? So how do you equate the value? Maybe it’s the most used stable coin, but if you talk about pure value, well, it can’t go up and down in price because it’s stable, right? That’s the whole point. So, what you then become is you become the most valuable payment network.
“It potentially is true that Facebook will have a huge ecosystem in their payment network of using this stablecoin, but how much value will it have
if it’s stable to the dollar? It will have the value of $1.”
“Stablecoins are effectively payment networks. They’re not currencies per se, because they’re pegged to some other currency. It’s just like saying that a gift card is a currency. It’s not. It’s a payment mechanism. It’s a way of holding another currency in a different form to be transmitted between certain parties that accept that payment mechanism, but it in and of itself, it isn’t a currency.”
We also talk about the Binance hack, custodial verses non-custodial crypto wallets, and holding our own crypto keys, like owning your own gold.
Paul and I recorded another podcast just a few weeks ago which may serve as background to today’s conversation.
See episode 064. Paul Puey on Skin in the Game and Levelling the Pyramid of Power from May 7, 2019 https://speakingofcrypto.com/064-paul-puey/