Facebook set to launch its own Cryptocurrency called “Globalcoin” in 2020
Facebook’s Crypto to be called “Globalcoin”
Social media giant Facebook is planning to launch its own Cryptocurrency named “Globalcoin” in the first quarter of 2020, according to a report from BBC. It is looking to start trails by the end of this year. Facebook recently registered a company called “Libra Networks” which is a Blockchain initiative that it has been working on for over a year. Even though Facebook has been secretive about its project, reports have emerged that the social media giant was looking for a Billion dollar funding for the Libra project.
Facebook has reportedly sought advice from the U.S Treasury officials and the bank of England governor Mark Carney regarding the opportunities and risks involved in creating a Cryptocurrency. According to FT, the company is also in talks with Winklevoss led Gemini and Coinbase for custody and trading solutions. Facebook is also in talks with payment giants like Visa, Mastercard and Western Union to collaborate and fund the initiative. The social media giant is looking to tap into the global remittance market by enabling cross border payments on Whatsapp in 12 countries including India.
Facebook’s Coin a Bitcoin Killer?
Facebook’s coin will most likely be a stablecoin pegged to fiat currencies like the dollar instead of a volatile asset like Bitcoin, there is no information available on the technical details of the Libra project. However, based on Facebook’s reputation of selling user data and its monopolistic tendencies, it is fair to assume that Facebook’s “Globalcoin” would mostly be centrally controlled, unlike Bitcoin’s decentralized governance. While some are critical of Facebook’s Crypto endeavor, others view it as a positive step for the mainstream adoption of Cryptocurrencies. One must not forget that Facebook’s humungous userbase which is larger than any online platform, any product released by Facebook will likely gain massive adoption and would be unprecedented in Crypto.
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