GlobalCoin Holders May Receive Dividends From FB

Member of the Wyoming Blockchain Task force believes FB will profit from a basket of currencies and low-risk securities that will be used to secure Globalcoin
11 June 2019   767

The social network Facebook will pay a certain percentage to the holders of its Global Coin, which is preparing for an early launch. This assumption was made by a member of the Wyoming Blockchain Task force, Caitlin Long, Forbes reports.

According to Long, the company will make a profit from a basket of currencies and low-risk securities that will be used to secure cryptocurrency.

Facebook parks the entire US dollar balance at the Federal Reserve via one of its bank partners, for example, it could earn 2.35% risk-free—that’s $235 million for every $10 billion deposited into its cryptocurrency. These profits will quickly turn into a new hot potato for Facebook politically, if not shared with users.

Caitlin Long

Member, WY Blockchain Task Force

A significant role, according to Caitlin Long, will be played on the global market by the Swiss management company of this crypto project. She believes that the unit will take over the function of the central bank - it will determine the share of national currencies in the steylcoin basket in order to set its rate.

Also, Long did not rule out that in the future, the use of Global Coin could make regulators reconsider the criteria for securities.

Is Facebook’s cryptocurrency a security? If it is, will users face the absurdity of needing a US brokerage account to buy a cup of coffee with it? Will Facebook catch breaks from regulators that smaller start-ups haven’t—because of the tax data honeypot Facebook’s project will generate for governments? That’s a good segue to the next prediction.

Caitlin Long

Member, WY Blockchain Task Force

The expert added that, in general, the emergence of a new coin will positively affect Bitcoin, because, unlike him, the Global Coin offer is not limited and opens up prospects for trading in this pair.

Huobi to Launch Argentinian Branch

Argentina is undergoing the financial crisis right now and head of the new branch believes there's a consensus been reached on the rejection of local currency
18 September 2019   49

Huobi Group has continued to expand its network of local cryptocurrency exchanges based on the Huobi Cloud platform, launching a trading platform in Argentina.

Huobi Argentina plans to create a local team and fiat gateway to trade or convert Argentine pesos into cryptocurrencies, the company said in a statement.

The payment channel will be launched by mid-October. It is assumed that users of Huobi Argentina will be able to make deposits using bank cards, transfers and through the most common digital payment systems in the region. Currently, you can purchase cryptocurrencies for pesos through the Huobi OTC service.

The opening of the Huobi cryptocurrency exchange in Argentina came at a time when the economy of this second largest country in Latin America was in a deep crisis. This year alone, inflation reached 55%, and President Mauricio Macri recently introduced new restrictions on access to foreign currencies.

According to Carlos Banfi, head of Huobi Argentina, a consensus has already been reached in Argentina on the rejection of local currency and banking services.

The increasing demand for crypto-related products and services makes Argentina a perfect entry point for Huobi to pursue larger projects in promoting cryptocurrency and blockchain to the market. With the launch of Huobi Argentina, we will be able to first offer local user the opportunity to trade with Huobi’s proven security, liquidity, and stability.

David Chen
Senior Business Director, Huobi Cloud

Earlier, the Huobi Group announced plans to expand its operations in emerging markets and open 150 sites under the Huobi Cloud program. Since the launch of Huobi Cloud in 2018, more than 120 trading platforms have been created on its basis, including in Thailand, Turkey, Indonesia and Russia.