Andreas Antonopoulos spoke about Facebook's Global Coin
Andreas M. Antonopoulos answered some questions in YouTube about the Facebook currency called GlobalCoin.
Antonopoulos is one of the world's leading experts in bitcoins and cryptocurrencies. On Tuesdays, he usually posts a question and answer video on his YouTube channel.
In this week's video, Andreas talked about GlobalCoin. Antonopoulos explained that GlobalCoin can not be defined as a cryptocurrency, since it does not have the characteristics of one.
GlobalCoin does not respect the five fundamental pillars of a true decentralized cryptocurrency, said Andreas.
The five characteristics are:
- Be open (that is, usable by all)
- without Borders
- and resistant to censorship.
In this sense, any token created by a centralized organization can not have these five characteristics, for example, it would not be neutral.
Also, due to regulations for the fight against money laundering, GlobalCoin could be censored by law, since the issuer has the obligation to intervene if necessary.
Also, the KYC identity verification procedures would be mandatory for GlobalCoin users.
Therefore, Facebook would act as if it were a common banking intermediary, which will prevent GlobalCoin from being neutral.
GlobalCoin can not even be completely public, since privacy rules prohibit Facebook from disclosing all data related to its use.
According to Antonopoulos, it will not even be open to everyone, since Facebook users must necessarily pass through its platform and its tools of use, in order to control each transaction.
In other words, according to Antonopoulos, Facebook will operate in a similar way to how they operate, for example, PayPal or JP Morgan.
On this point, he argues that banks are the main competitors of this initiative and that they are the ones who should be concerned and not Bitcoin.
It is possible that GlobalCoin forces the traditional banking system to innovate to be more open, but there will be no direct impact on cryptocurrencies.