Mark Zuckerberg, CEO and founder of Facebook Inc. © 2019 BLOOMBERG FINANCE LP.

Rumors are that Facebook will create its own cryptocurrency - they have been circulating for a long time. Unfortunately, the fact that this product will contain the word "cryptocurrency" in its name does not mean that it will have anything to do with Bitcoin or the functionality offered by Bitcoin.

Cryptocurrency and blockchain are two words that are often abused and thrown without paying much attention to the true meaning of these words. For example, XRP (Ripple) - although it is undoubtedly a very interesting and valuable project - is too centralized to be called a cryptocurrency in the true, original sense of the word. The situation is similar with different stablecoins available on the market today. Unfortunately, Facebook's cryptocurrency - "GlobalCoin" - will go to the same bag - centralized, pseudo-cryptocurrency.

When we analyze whether a given project can be classified as cryptocurrency - it is worth first to familiarize yourself with the specific features of decentralized cryptocurrencies - such as Bitcoin. There are many valuable articles on the web that can help you. Facebook's cryptocurrency will be more like another 'PayPal' than 'Bitcoin'.

From publicly available information about Facebook's 'cryptocurrency' it can be concluded that it will be something similar to PayPal or CashApp.

The only thing that will make Facebook's product different from traditional payment services is that it will have the magic word "blockchain" in its name.

For example, according to reports, while working on its "cryptocurrency" Facebook closely cooperated with banks and other representatives of traditional finance, because the product they offer will be stablecoin. On the web, we can also find information that Facebook has hired two former members of the Coinbase Compliance team (compliance teams deal with product compliance with laws and regulations). This is a direct contrast to Bitcoin, for which compliance with laws and regulations is irrelevant. Another thing is that the government will not allow any such centralized coin to be used for illegal activities.

So if anyone starts using it for money laundering or other illegal activities, it is only a matter of time before the government closes such projects. And if the project does not close, it probably means that this stablecoin does not actually offer any added value compared to something like PayPal.

Based on an article from Forbes: "Facebook's Upcoming Cryptocurrency Has Nothing To Do With Bitcoin".