By CCN Markets: Facebook’s GlobalCoin cryptocurrency will likely pay interest to its users. That’s the prediction of Wyoming Blockchain regulator and crypto champion Caitlin Long.
The social media company is gearing up to announce its much-hyped cryptocurrency this month, but very little is still known about the project, known internally as Project Libra. On Sunday, Long shared some predictions about how the cryptocurrency might work and how it will impact the crypto industry.
“Facebook will pay interest to users of its cryptocurrency, which will eventually lead to populist calls to repeal subsidies at the heart of the US banking system”
How Facebook cryptocurrency might pay interest
Here’s how Mark Zuckerberg’s crypto solution could be forced to pay interest back to its users.
Facebook’s cryptocurrency is a stablecoin, pegged to the value of a basket of global currencies. To keep it stable, GlobalCoin will be backed by millions in fiat currency. That money will be held somewhere – probably the Federal Reserve – generating interest.
“The assets backing the cryptocurrency will generate interest income”