FIFA Announces Plan to Launch its Own Cryptocurrency
FIFA, the international governing body of football, has announced its plan to launch its own cryptocurrency, dubbed “FIFA Coin.” The announcement was made during a surprise meeting in Washington, where FIFA President Gianni Infantino revealed the organization’s plans to utilize the cryptocurrency to tap into the global popularity of the sport and the massive economic power of the $170 billion industry.
Infantino emphasized the potential of the cryptocurrency, stating, “Imagine the potential that only exists in football, if we develop it.” He also expressed the organization’s interest in developing the FIFA Coin and its intention to do so from the United States.
The FIFA Coin is not the first cryptocurrency to be linked to the world of football. Many crypto companies have already partnered with football clubs and organizations, offering digital fan tokens that can be traded and used to gain exclusive benefits.
The UEFA, the governing body of European football, has partnered with Socios, a platform that issues digital fan tokens based on the cryptocurrency Chiliz. These non-fungible tokens (NFTs) offer fans not only exclusive benefits but also tradable digital assets.
However, critics warn of the risks associated with these partnerships. Football Supporters Europe, a network of influential fans, has criticized the partnership between UEFA and Socios, citing the dangers of speculative crypto investments.
The English Premier League has already shown a strong connection between football and cryptocurrency, with 17 of its 20 clubs having partnerships with crypto firms, including Arsenal and Manchester City, which have partnered with Socios. Some clubs, such as Southampton, have even featured the Bitcoin logo on their jerseys, while Watford has showcased the symbol of the cryptocurrency Dogecoin.
Not all deals have been smooth, however. Manchester City was forced to put a deal with the firm 3Key on hold after concerns were raised about the company’s legitimacy and FC Barcelona ended a partnership with Ownix after it was discovered that senior executives of the company were involved in legal issues.
Experts are skeptical about the use of these digital fan tokens, with Christopher Grunder, a Swiss financial analyst, warning of the speculative risks associated with these investments. Grunder also emphasized the potential of well-designed crypto projects.
The rapid spread of cryptocurrency in the sports world has led to regulatory discussions. The British advertising authority has already banned advertising campaigns for fan tokens, citing the risks of crypto investments and a G20 financial group has called for stricter regulation of digital assets.
The FIFA Coin’s launch has sparked concerns about the organization’s involvement in the crypto market, with Grunder stating, “The football world has already merged with betting companies – now the crypto industry is also entering the scene, often in an intransparent manner. Seriousness is required: only professional and official projects should be allowed and not questionable Memecoins like Hawktuah or the recently failed Coin from Argentina.