Ted Livingston, the CEO of a messaging platform, Kik, is of the view that Facebook’s Facecoin stablecoin is out to replace the U.S dollar. The CEO is known for reliable predictions in the cryptocurrency arena.
According to Livingston, Facebook is not anchoring its crypto plans on unstable reasons. The social media platform is continuing its push to ‘help the world.’ Specifically, reducing the friction experienced when people are sending money abroad – to friends and family.
Facebook Is Emulating WeChat
Livingston has conspicuously shared his thoughts concerning Facebook’s stablecoin, Facecoin, in a medium post. Although Facebook has been mean with details regarding Facecoin, Kik’s CEO was able to read between the lines and unearth what Facebook has in store.
The CEO notes that Facebook is keen on emulating WeChat, a leading messaging and payment application in China. Like WeChat, Livingston notes, Facebook wants to privatize the U.S dollar to facilitate cheap transactions and in the process encourage people to trust Facebook with their money.
For example, WeChat, Livingston observes:
“Allowed people to take their money out at any time, but they also added more and more reasons for people to keep their money inside: paying hydro bills, buying food, booking vacations and more. Soon, no one was taking their money out.”
Kik’s CEO added that while hundreds of dollars are sent abroad to family and friends, the process is complicated, expensive and slow. “If Facebook could offer people a way to send money home for free, it would be a game changer for tens of millions”
But Facebook’s approach is different from WeChat’s:
“Instead of working with regulators like WeChat did in China, Facebook can roll out a global financial system without needing to go through the time-intensive process of working with banking regulators country by country. Keeping track of the money will be done through the blockchain allowing Facebook to permit payments in their apps without needing to become a bank.”
To benefit from it, Livingston notes, Facebook will find a way to make people spend money through the application e.g sending money, paying bills, etc.