According to a report by the BBC, Facebook has serious plans introduce its own crypto currency. The facebook coin, internally referred to as ‘GlobalCoin’ will be introduced in multiple countries in the first quarter of 2020, after extensive testing at the end of this year.
The new stablecoin which has been rumored about for a few months now, will allegedly be used for Facebook’s own payment system in which users will be able to transfer money. The system could give Facebook valuable insights into how, and on what, users spend their money.
The goal behind it is simple, If the payment system hits off, it could soon compete with banks and function as a global, online system with dramatically reduced fees. Facebook wants to create a digital currency that provides affordable and secure ways of making payments, regardless of whether users have a bank account.
According to the BBC, Facebook is likely to link its cryptocurrency to fiat money (fiduciary money), such as the euro, dollar or yen, to prevent a fluctuating exchange rate with large increases or decreases in value.
Facebook has reportedly been speaking to a number of companies and government agencies to make sure the regulatory side is approved. The company apparently has already spoken to Bank of England governor Mark Carney, a conversation in which they discussed the opportunities and risks involved in launching a cryptocurrency. Facebook seems to have sought advice on operational and regulatory issues from officials at the US Treasury as well.
For the commercial side of things, the firm has been talking to Western Union in a quest to look for cheaper and faster ways for people without a bank account to send and receive money.
The BBC report also mentions that there are some concerns about the new payment system. In recent years, Facebook has come under fire over its handling of users’ personal data, and regulators are likely to examine the launch closely.
Earlier this month, the US Senate and Banking committee wrote an open letter to Mr Zuckerberg questioning how the currency will work, what consumer protection will be offered and how data will be secured.
According to BBC, Facebook has not responded to the report of the British broadcaster.
- Generous Donation of $120,000 in Bitcoin by Anonymous Donor Very Well Received by Bitcoin.org - May 30, 2019
- ARK Launches the ARK Deployer, an Open Source Tool to Create a Blockchain in 3 Simple Steps - May 28, 2019
- Bitbond, a Global Lending Platform, Launches STO to Support Small Businesses in Asia with Loans - May 28, 2019
- Famous Swiss Watchmaker, Franck Muller Launches the World’s First Bitcoin Watch - May 25, 2019
- Facebook’s GlobalCoin Allegedly to be introduced in 2020 - May 24, 2019
- Mobile Carrier AT&T to Accept Online Payment Options in Cryptocurrency with BitPay - May 24, 2019
- Consumers Can Now Buy Bitcoin with Cash at 2,200 Coinstar Kiosks Located Inside Grocery Stores - May 24, 2019
- Visa Token Service Acquired by Eleven New Partners for Enhanced Consumer Confidence in the E-Commerce Space - May 23, 2019
- Voyager Announces Integration of Ledger Vault’s Asset Management System into its Crypto Trading Platform - May 22, 2019
- VeganNation Welcomes Game of Thrones Actor Jerome Flynn to its Advisory Board to Unite the Vegan Community - May 21, 2019
- Huobi Honors Bitcoin Pizza Day by Selling Bitcoin 50% off Market Price & Prime 3 Launch - May 18, 2019
- Dutch Multi City Blockchain Week to be First of its Kind with Events Hosted All Over the Country - May 17, 2019
- Partnership between Travala.com and Bitcoin.com Empowers Travelers to Save on Hotel Stays and Pay Directly with Leading Cryptocurrencies - May 16, 2019
- Q2 Holdings Announces the Launch of Q2 TrustView, a new Governance and Protection Technology for Banking and Lending - May 15, 2019
- First Security Token Blockchain called Polymesh announced by Polymath at Consensus New York 2019 - May 14, 2019
- Facebook lifts Crypto Ad Ban, One Year after the Social Media Giant Banned all Ads Related to Blockchain and Cryptocurrencies - May 9, 2019
- Blockchain Becoming the Revolutionary Technology Guaranteeing High level of Privacy and Security in Emerging Markets - May 8, 2019
- With Hoard, Video Game Developers Will Now Have the Ability to Seamlessly Integrate Games with Ethereum - May 1, 2019
- ShelterZoom Creates Contract and Transaction Management Platform Marking New Contract Evolution on Blockchain - April 19, 2019
- Samsung SDS and Tech Mahindra Join to Explore Global Blockchain Market using Samsung’s Nexledger Platform - April 15, 2019