Bitcoin, Crypto currency, Blockchain

Antonopoulos: that’s Why banks should fear the Facebook GlobalCoin

18b439420a2f1400b196fc8fb6562a85 - Antonopoulos: that's Why banks should fear the Facebook GlobalCoin

A. Antonopoulos: that’s Why banks should fear the Facebook GlobalCoin

Home News A. Antonopoulos: that’s Why banks should the Facebook GlobalCoin fear

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Marcus Misiak –
13.06.2019

Andreas Antonopoulos spoke during a Q&A session recently about how the GlobalCoin of Facebook fails in comparison with Bitcoin, and discussed the challenges for the traditional banking system.

In a Q&A session to GlobalCoin, the computer scientist and Bitcoin explained-COP Andreas Antonopoulos, such as the upcoming Stablecoin of Facebook, with the help of money across borders is to be sent, the banking sector is disturbing, and why it is not a real crypto-currency. He argues that there are “five pillars” that define a real crypto-currency:

  • public
  • open
  • neutral
  • boundless and
  • censorship resistant

and that none of them applies for GlobalCoin. Technically, will leave GlobalCoin on Miner like Bitcoin, unlike Bitcoin GlobalCoin will, however, work in a closed System, which must comply with the laws of the country in different jurisdictions. So Miner (Full Nodes) can join the network, are supposed to be 10 million dollars due.

Antonopoulos responded to the concerns that the GlobalCoin could be a real competition for Bitcoin:

I sold all my Bitcoin to buy Facebook’s GlobalCoin. No, I’m just kidding.

Antonopoulos justified his Belief that there is no threat to the crypto-currency is, by declaring that the GlobalCoin not the basic features of crypto-currencies and not on the five pillars of a Blockchain am. Antonopoulos stressed the fact that regulated companies are the list of the Office of Foreign Assets Control (OFAC) limited, which prohibits institutions with a certain number of people and businesses money transaction of business. The existing laws also require that financial institutions identify the name and location of the sender and the receiver, which, in turn, requires a KYC documentation, which is reflected Essentially in a exchange of banks.

“The most Important thing is that you are not open to be able to. You can not give you the access to Send or Receive outside of their platform. You can’t allow you to extract it from your platform. You can’t allow them to sell it to someone else, without that this is a mediator. You have to sit in the middle, and each of the transaction control. They are not open. You are not open to the public. You are not neutral. You are not limitless. You are not censorship-resistant. You are not a crypto currency. You are a Bank. You are a Bank, such as PayPal, and JPMorgan Chase.“

“You can not censorship-resistant , because they are required by law, the Transfer of funds to certain Places to prevent. These include units in sanctioned countries such as Iran, North Korea, Venezuela, etc.“

“You can also not limitless , because it is prohibited money to certain countries to send, which means that you will be able to have, both to identify who this money gets as well as where it is. In order to determine who and where you are, you need to know the funding requirements to combat money laundering against terrorism. In Essence, you start to behave like a Bank. Everyone who implemented a centralized payment system, you must follow all the rules of a money transmitter or a Bank. At this point, you’re no longer neutral.“

“The Protocol itself can not be neutral , because neutrality means every sender, every receiver, every value regardless. And the Protocol doesn’t care where you are, who you are, what you do with this money and why. And a regulated company can’t take care of all these issues. You need to check all of these things. Who are you, where are you, what are you doing it comes with this money, and where did he come from? You might notice the very specific questions, you have probably realized. Your Bank has provided you with, probably, some of these questions. Some of the exchanges with which you have to do it, have you made probably some of these questions. What is your income? Show us your ID. In which country you live in? You’re Americans?“

Antonopoulos comes to the conclusion that Facebook acts as an unlimited company in many aspects. The Transfer of money but a completely different, more difficult matter.

But to try, the payment provisions for two billion customers, which are divided in 194 countries, is a quagmire, and it will lead to the same problems as PayPal. Why is PayPal not a global company, serving 194 countries alike? Because you can only use 20 or 30 countries equally, and even there you have to do all of these things, because you have become a Bank.

According Antonopoulos Facebook is, therefore, to a very large, international Bank. Banks should, therefore, have “really scared”. Because even if Facebook is not so open, so limitless, so neutral and censorship resistant as a crypto-currency can be, it can certainly open, limitless, and more and more countries and users than a classic Bank, Antonopoulos.

Featured Image: Ink Drop | Shutterstock

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