Crypto Technology

Crypto Technology and Digital Currencies are Not Suitable for Payments, according to Facebook Executive

Crypto Technology Not Suitable for Payments

As most crypto enthusiasts might already know, Facebook recently announced banning crypto-related Ads. Now, David Marcus, Facebook’s VP of Messaging, has stated, “the various communities running the different blockchains and the different assets need to fix all the issues”. The “issues” that he speaks of are cryptocurrency transactions being too slow and costly. Mr. Marcus goes on to add that if and when crypto technology is able to solve these problems, then his company might consider using them for payments. Notably, the Facebook VP has been intrigued by cryptocurrencies, and he even became a board member of Coinbase back in December 2017.

Mr. Marcus can also be considered an expert in payments system considering he is the founder of Zong, a mobile payments company. Zong was later acquired by PayPal, and Mr. Marcus became president of Paypal, before leaving to join Facebook. His decisions tend to have a lot of influence, especially if you think about what could happen to the crypto-market if Facebook Messenger enabled payments using cryptocurrencies. Given that Facebook has over 2 billion users, it’s probably one of the best ways that cryptos could gain mainstream exposure. Should this become a reality in the near future, then it has the potential to play a pivotal role in significantly increasing the value of the crypto-market.

Facebook Does Not Believe in Cryptocurrency

The Facebook executive mentions that“The experience is really frictionless because it’s debit card to debit card experience”. His social media company has been processing payments using debit cards for quite some time. Since crypto technology has not yet advanced to the level of standard credit or debit cards, Facebook’s reasons for not approving crypto-transactions seems to be understandable.

As previously reported by Core Media, Vitalik Buterin, Ethereum founder and one of the world’s leading crypto experts, acknowledges that crypto technology needs to be drastically improved. Therefore, Vitalik has encouraged the crypto-community to start understanding how cryptocurrencies work, instead of focusing on their price, and concentrate on solving the various issues related to them.

Cryptocurrencies Going Through Growing Pains

Mr. Marcus’ statements regarding cryptos come at a time when major banks like Bank of America and JP Morgan have started declining cryptocurrency purchases made with their credit cards. It’s evident that the majority of financial institutions and world governments have their reservations when it comes to digital currencies. Also, depending on who you ask, everyone seems to have a different opinion about the foreseeable future of cryptos. For instance, Ran Neuner, CNBC Cryptotrader Host and CEO of OnChain Capital, has recently made a very strong statement in support of digital currencies, particularly Bitcoin. Mr. Neuner remarked that,

“Bitcoin is a store of value but it’s a new store of value and there’s not massive market adoption yet. And as we get mass market adoption then we can expect for it to become the universal store of value.”

Clearly, crypto technology must be improved greatly, and it might just be going through some growing pains. Therefore, apprehensions regarding cryptos have to be addressed, if we expect them to be embraced as a world-wide store of value, or even as a form of payment. We’re in the middle of a time period for the crypto-market where regulators and large organizations are taking stringent measures to discourage the use of digital currencies. However, if the cryptocurrency tech can mature and alleviate most of the concerns that authorities have regarding their use, then it could lead to their mainstream adoption.