Facebook Plans To Release Its Crytocurrency, GlobalCoin, in 2020
We’ve already heard of Facebook’s plans to launch its own crypto-currency. This currency will be called GlobalCoin, and it could be launched by early 2020. Facebook’s plan to launch a crypto-currency was first reported in December. Facebook CEO, Mark Zuckerberg, has reportedly met with the governor of the Bank of England as well as US Treasury officials and officials from other money transfer firms.
Facebook calls this venture Project Libra. They claim that they are aiming to create a cheap and safe way for people to transfer money. Facebook will also be using GlobalCoin as a form of loyalty incentive. Facebook will award users a small fraction of a coin for viewing or interacting with ads.
The most important part of any currency is its stability. And in order to maintain the stability of its crypto-currency, Facebook is reportedly trying to peg its value with a few stable currencies across the world. These include the US dollar, the Japanese yen and the euro.
Here’s how CEO Zuckerberg summarized the project during a developer conference at Facebook last month:
“Payments is one of the areas where we have an opportunity to make it a lot easier. I believe it should be as easy to send money to someone as it is to send a photo.”
If successful, Facebook’s GlobalCoin could potentially disrupt existing financial networks by offering transaction cheaper than that offered by banks. Facebook has a user base of 2.4 billion people. And it also owns two other massively popular applications, Instagram and WhatsApp.