Bitcoin Q&A: Facebook Coin and JPM Coin

“Are you worried about the prospect
of a Facebook or Telegram coin?” No. Let me elaborate. Since the very early days,
I have said that we will eventually see corporate coins, like Facebook Coin or Telegram Coin. We will see pegged digital currencies, or
“stable coins,” that are developed by large banks. We will eventually also see central bank digital
currencies, such as Fed Coin or Digi Dollar. It could be any central bank in the world that does this.
All of these have one thing in common: they are fiat. They are centralized, censorable, bordered,
controlled, [permissioned], and closed systems… that have the same characteristics of fiat,
but are simply now digital. Guess what? We already have digital fiat.
All banks operate primarily with digital fiat. About 92% of the money supply in the world is
digital fiat, with no physical equivalent in cash. The only difference here is the implementation.
Instead of a Microsoft SQL Database, it is implemented as a blockchain database,
but both are controlled by a central operator. Nothing has changed here at all. Facebook
will not transmit ‘FaceCoin’ across borders… without complying to all the banking regulations. Facebook will not be able to offer their coin without
strict KYC/AML [policies], any more than PayPal can. Facebook will not produce a coin that is censorship
resistant, open, decentralized, neutral, or borderless. It will not be similar to any cryptocurrency.
They will recreate the world of digital dollars, just like PayPal and Venmo, etc. Sure, they may be massively successful,
but they will compete not against cryptocurrencies. They will be competing against other banks. The product they are offering does not differentiate
[enough] from the digital fiat that banks offer. They could offer better user experience,
[transaction] speeds, or customer service. Perhaps more brand recognition for their digital fiat
than Visa, JPMorgan Chase, PayPal, or Venmo. [Those companies] should be very scared because
they will see more competition from Silicon Valley. None of this competes against cryptocurrencies.
The differentiator for cryptocurrencies is freedom. Open, neutral, decentralized, borderless, and
censorship resistant money for the entire world, without discrimination, identification, or control. None of those features can be offered by these coins.
If you believe those features are needed in the world, and I can tell you that they are, though perhaps not
[yet] by your average American or western European… They already have PayPal, Venmo, and all of those
[options]. Adding ‘FaceCoin’ won’t change anything. [Cryptocurrencies] are needed by people who live
under currency controls and failing fiat systems, authoritarian governments, corrupt institutions,
and kleptocratic Mafiosi banks. Guess what? About 90% percent of the human
population lives under [or close to] those conditions. For them, ‘FaceCoin’ isn’t a solution.
It is simply another broken, centralized currency. Open systems are the solution; the problem
is caused by centralization of control. That problem cannot and will
never be solved by ‘FaceCoin.’ ‘FaceCoin’ will deplatform users.
It will censor and slow down transactions. It will require you to document who you are paying,
why you are paying them, where you got your money, and if they don’t like the answer (who paid you
or who you paid), your account will be frozen. Just like PayPal does today. Nothing changes.
In fact, Facebook will probably be more aggressive. They will apply surveillance to all of your transactions,
selling that data to hundreds of various… commercial companies and intelligence agencies,
totalitarian regimes and [entities] like that. Facebook will sell the financial [data] of dissidents to
the dictators hunting them down and get people killed. Because that is how fiat works. “JPMorgan Coin.” This question comes from Jamie.
Does it really come from Jamie [Dimon], though? Maybe that is just a pseudonym. “I am just curious
about what your thoughts are on bank coins.” “Will they become more mainstream?
If so, what impact will that have on other coins?” Yes, bank coins will become mainstream.
Bank coins will have more market capitalization. Bank coins will have more users [in the short term].
Bank coins will deliver less [financial] freedom, decentralization, neutrality, censorship
resistance, less of everything that matters. They will be competing primarily with fiat and
other bank coins, not [with cryptocurrencies], coins where the primary differentiation is freedom,
decentralization, open-access, neutrality, and… censorship resistance for the world. This is something that bank coins cannot and will not
ever offer, therefore they do not compete [with Bitcoin]. Does that mean they may be “bigger” and “richer”?
Absolutely. Fiat is already bigger and richer. But that doesn’t matter. The measure of success is not
market capitalization or how fast you shed principles, or compromise to absurd regulations that impoverish
people both financially and in terms of their freedom. They will subject you to surveillance capitalism and
the rapacious corruption of dictators around the world. That is not the measure of success. The measure is,
[how many people can you help to reach freedom]? To exercise their human rights of free trade, free speech,
free association, and the possibility of a better future? [They will achieve that] through a system of money
that does not discriminate, is not controlled by the few, is not manipulated [just] to enrich the upper class. We have [those problems] in fiat. Will the
bank coins keep coming anyway? Sure, they will. No matter what, if you start compromising your
principles, you will soon discover that there are… very big and well-funded organizations that have
“compromise our principles” as their business plan, and the ability to do it faster than anybody else. That is a race to the bottom. We should be
strengthening our principles with cryptocurrencies, introducing better privacy, anonymity,
fungibility, security, and usability. This is already happening in the crypto space.
JPM Coin can have their [market capitalization]. Enjoy? Have fun with that…
I expect that “experiments” like this… especially in the beginning, will fail miserably. They fundamentally misunderstand the differentiation
or value of cryptocurrencies and blockchains. What they are doing is business-as-usual, disguised
as innovation, when it really doesn’t change [anything]… about the power imbalance, which is
what cryptocurrencies are all about. “E-coin,” yes. Evil Corp. It is really funny how JPMorgan
Chase is quite [closely] following the plot of Mr. Robot, the exact plot line of [the second season], even though
we know that it ends with their offices in flames.

10 thoughts on “Bitcoin Q&A: Facebook Coin and JPM Coin”

  1. Its nice to see that facebook already open for cryptocurrency but im more for privacy and security. DeepOnion is the real answer to it and nailed it up to now.

  2. blockchain from banks/facebook vs blockchain from bitcoin/cryptos <=> OS from microsoft vs OS from linux…

  3. See I think that everyone is missing the MASSIVE significance of Facebook and JPM coin. In 2017 $40B would rush into the market on a rumor that Facebook acknowledged a Bitcoin tweet. Now they have both fully acknowledged that crypto is the future of money and want to Tokenize the world, but no one cares? ROFL. Peeps please understand that a semishitcoin filled semi-Utopia is a hell of a lot better then no choice!!!! We may never change the % of fools just the % of users and the % of freedom and % of majority represented! Choice IS freedom so Shitcoins MUST exist to represent our freedom. Being forced to use a currency with infinite discretionary supply and int rates is literally slavery. SO please unite to get rid of USD i.e. the #1 problematic shitcoin first!!! THEN after we can talk about the quality for JPM coin!

  4. Bitcoin become semi controlled
    by Exchange the easiest way to acquire BTC
    all exchanges apply KYC
    what I don’t understand why Bitcoin need controlling exchange
    as long as the exchanges are the easiest way to get BTC
    The mass adaptation will never happen

  5. Privacy coins have their own value. Jp morgan and company coins are already presumed to be valuable with out the hard work of of setting up the coin. Thats why i have thrown my money into top notch privacy coins like deception, pivx and monero.

  6. But doesn't the danger to btc come from the fact that they will still me marketed and sold as cryptocurrencies? I mean will market dominance of btc be lost to Facebook coin and what effect will that have on btc? I'm sure like other stable coins they will still be counted as crypto's. How will this effect the market? Just curious what you think.

  7. "Bitcoin's difference is freedom: Open, decentralized, neutral, borderless, censorship-resistance"

    Understand and Memorize this, guys / girls, the rest will follow.

Leave a Reply

Your email address will not be published. Required fields are marked *