Facebook’s Alleged Upcoming Cryptocurrency Won’t be Similar to Bitcoin

There are so many rumors that have been circulating for a long time stating that Facebook will be issuing its own cryptocurrency. While the situations are all supporting this rumor and there are high chances of Facebook launching its own cryptocurrency, it has been said that this currency won’t have anything to do with the bitcoin.

The phrases cryptocurrency and blockchain technology are used for everything these days. The world’s third largest altcoin Ripple (XRP) is too centralized to be named as a cryptocurrency, but people call it one anyway. Similarly, various stable coins present in the market are also long away from being called a cryptocurrency, but according to some people, all the digital assets are cryptocurrencies only.

Facebook’s so-called coin will also fall into the same category with a centralized platform.

There are so many digital currencies available in the market, but some of the coins like BTC are different from that. The decentralization incorporated in these platforms is quite different from the one’s traditional digital currency.

The Bitcoin believes in Proof-of-work where both sender and receiver remain anonymous. This proof-of-work sets Bitcoin apart from all the other types of currencies available.

If all the reports are to be believed, the cryptocurrency of Facebook won’t be much different from the digital wallets like Cash App or Paypal.  The only difference that one will observe here is the term “blockchain.”

Facebook is working with the banks and several other financial institutions for its initial coin offerings. It has also hired two employees from Coinbase to manage the rules and regulations. This step itself states that the cryptocurrency from Facebook will be in contrast with BTC as the original decentralized platform don’t have any compliances.

This will be controlled digital wallet which won’t be used for any kind of illegal activities. David Gerard, a blockchain specialist, has posed a question what is the need for developing a digital wallet on Facebook? None has answered this question.

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