Many people have come forward to give their views about the proposed Facebook Cryptocurrency. Ted Livingston, the founder and CEO of Kik, a messaging platform, who is always ahead in making predictions claims the giant social media network wants to replace the U.S dollar. By allowing people to send money overseas at a low cost, the new virtual currency is expected to disrupt the money transfer market
Facebook Says It Is “Helping People”
Facebook has come forward to defend its new Cryptocurrency project saying that it wants to “help the people.” However, Facebook’s Mark Zuckerberg is not just planning to create his coin. The social media network has over a billion users worldwide. Consequently, creating a token that can be used by such a high number of people is not a small deal.
According to Kik’s founder and CEO Ted Livingston, Facebook wants to replace the U.S. dollar. Of course, Facebook is helping the world. However, the company plans to assist people working in foreign countries to send money to their home regions. Livingston has studied the new Facebook project and has managed to connect the dots.
How Facebook Will Affect The Money Transfer Market
Millions of people work away from their home countries for reasons such as security and better pay among others. The United States, the United Kingdom, and Germany are some of the countries that host a significant number of foreign workers. Every year, these foreign-based workers send hundreds of billions of dollars to their loved ones back in their home countries.
However, sending money from one country to the other is not always easy, for both the senders and the recipients. The process is complicated as both parties must provide several details. It is also expensive to send money abroad with charges going as high as $14 for every $200 sent. The recipients have to wait for some time to get the money as the process is slow.
The Facebook coin is expected to assist people by providing foreign-based workers with a fast and cheap process of sending money abroad. The use of blockchain technology will enable Facebook to allow payments on their network even without being a bank. The new money remittance process is expected to revolutionize the industry and disrupt established businesses in the sector.
Facebook Project An Inspiration to WeChat
The new Facebook Cryptocurrency project is an inspiration of the Chinese messaging app called WeChat. The Chinese social media network has a mobile payment service that enables its users to send, receive, and even make payments for some goods and services on the app. Currently, WeChat users can use the app to pay water and electricity bills, book vacations, and buy food among other things.
The new Facebook coin will become popular as it will allow people to transfer money fast and cheaply. Consequently, many users will have a reason to store their funds on the network. By providing the users with new ways of spending their money on the app, Facebook will be able to “keep money inside the system” according to Livingston.