What impact could Facebook’s digital currency have on the financial industry?

What impact could Facebook’s digital currency have on the financial industry?

According to a New York Times report we have recently covered, Facebook is on pace to issue its own digital currency in the next few months. Prompted by its rivals, especially Telegram, which managed to raise a whopping $1.7 billion in its ICO campaign, the effort Facebook has put towards creating its own cryptocurrency could have a substantial impact on global commerce.

In this article, we are going to discuss the primary reasons why Facebook’s digital currency could lead to a revolution in e-commerce, what advantages Facebook has over the competition in the payment processing space, and the likelihood of Facebook solving the huge remittance problem workers and employees are facing around the globe.

Improved e-commerce

As per the report, Facebook plans to peg the value of its digital coin against a basket of various world currencies, essentially embracing the stablecoin model. This will presumably incentivize users to start using the new digital currency without the fear of losing money due to massive price swings that are common with most cryptocurrencies.

Once users will start exchanging fiat money to obtain the equivalent amount of Facebook coins into their mobile wallets, it will become incredibly easy to buy items from merchants embracing Facebook’s solution, both online and in brick-and-mortar stores. Third party payment services, like PayPal, or manually entering credit card information for online purchases, will quickly become a thing of the past if Facebook’s vision is to become a reality.

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