Facebook Pay is a New Threat to Cryptocurrencies?

Kataryna Kovtun August 14, 2020


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Facebook has launched the Facebook Pay service in Russia and Ukraine without a preliminary announcement

It is now available in limited mode.

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The service will not compete with cryptocurrencies, experts say.

“Facebook`s new pay service is not in any way related to cryptocurrencies. It is correct to compare it with payment services like PayPal or Chinese WeChat,” said Dmitry Kryshtal, director of business development at MonolithosDAO.

In his opinion, Facebook Pay is primarily aimed at competing with these services.

Arseniy Poyarkov, vice president of the National Association of the Digital Economy, believes that the payment system inside Facebook can compete with such giants as Visa and Mastercard.

Facebook Pay is a centralized service, and therefore it is quite challenging to compare it with cryptocurrencies, experts say.

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Problems with the launch of Facebook’s digital currency indicated that “the payment systems of American companies will obey all the requirements of regulators in terms of KYC and AML and will not differ in any way from classical payment systems,” added Arseniy Poyarkov.

The opinion of representatives of crypto exchanges about Facebook Pay

The representative of the Garantex crypto exchange Tatiana Maksimenko also noted that the centralization of Facebook service “does not give it the right to put it on a par with cryptocurrencies.”

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According to her, this service is instead a tool “for everyday, routine micro-payments between users, quickly sending funds from one user of the social network to another.”

Dmitry Kryshtal expressed a similar opinion:

“Facebook Pay is a tool for some small, fast payments. Given the stories of data leaks, incomprehensible ethical policies, and cases of outright censoring of content, it is unlikely that Facebook users will decide to use Facebook Pay to transfer significant amounts of money, ”said Kryshtal.

Recall that the service was launched in November 2019. It allows you to make purchases on other Facebook products — Instagram, Messenger, and WhatsApp.

Facebook Pay supports cards from most payment systems, including Mastercard and Visa, and PayPal payments.

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