From the post:
However, Konstantin Brazhnik, Chief Technology Officer of the Juris Project, pointed out to Finance Magnates that Facebook’s illustrious data-gathering policies will likely not have significant negative effects on its cryptocurrency. “Facebook has no incentive to adhere to the counterculture ethos that surrounds cryptocurrencies such as Bitcoin and Ethereum,” Brazhnik explained, referencing the decentralized, ‘trustless,’ and immutable aspects of the Bitcoin network.
In fact, “Facebook has managed to succeed exceptionally with plenty of bad press about its data sharing practices. Clearly its users are not that concerned or the value it delivers is worth the price of privacy.”
“This is a perfect environment to release a 100% auditable and surveillable currency,” he explained.
Indeed, “Any entity releasing a stable coin will be held to an exponentially higher standard than the US dollar in terms of AML and KYC capabilities. What better entity to deliver it than the one that knows all of the embarrassing moments and confessions of its own users.”
Additionally, Facebook’s cryptocurrency payment system could take its data-based advertising to a whole new level. “A fully surveillable stable coin would allow frictionless financial transactions that could be instantly auditable and AML/KYC compliant,” Brazhnik explained.
“Imagine seeing a Facebook marketplace ad for a house, clicking a button, and instantly owning it. A cryptocurrency paired with Facebook’s extensive knowledge of its members is a perfect environment in which to build frictionless financial vehicles which automatically qualify buyers and clears transactions...if data is the new oil, then Facebook is Saudi Arabia.”
“In the US, we take our fiat currency for granted, after all, it is the de facto global reserve currency,” Brazhnik wrote. “However as soon as one steps a foot outside of the US borders, they feel the pain of global currencies that fluctuate with market and political forces. A Facebook or Telegram has the potential to smooth these volatilities in a way that consumers will flock to them just to avoid the uncomfortable and obsolete practice of fiat currency exchange.”
Check out the full post: