Facebook’s digital currency is reportedly set to be announced later this month, per The Information. The report adds that the social media behemoth is working towards getting its cryptocurrency out with the support of external backers. This may not be unconnected with the company’s recent travails in terms of trust and privacy.
Using external backers is probably the best option for the social media behemoth considering how badly battered its image has been in the eyes of the public. Collaborating with trusted names in the global financial market will give the cryptocurrency the needed push it deserves when it comes to winning the hearts of users.
Facebook has held series of meetings and negotiations with dozens of financial institutions as well as other tech companies to form “an independent foundation that will contribute capital and help govern the digital currency,” the report adds. When launched, it [the digital currency] will serve as a borderless currency that will not attract any transaction cost, and will be vigorously marketed in developing countries where “government-backed currencies are more volatile,” people familiar with the matter stated per The Information.
Among other things being planned by Facebook include physical ATM-like machines that will enable users to buy the currency, and employees working on the project will be able to take their salary in the new currency.
A couple of weeks ago, the BBC reported that 2020 is the magic year, and the name of the cryptocurrency Facebook is set to launch in the coming year is “GlobalCoin.” GlobalCoin according to the BBC is set to roll out in about a dozen countries in the year 2020—the first quarter to be precise. The social media giant is expected to start detailing its plans in the summer, and has reportedly spoken to Mark Carney, Governor of the Bank of England. Facebook founder Mark Zuckerberg met with Mr Carney last month to discuss the possibilities as well as risks involved in launching a cryptocurrency.
It seems the Bank of England was not the only financial institutions consulted by the social media behemoth—the report also adds that operational advice on operational and regulatory issues was sort from sought from officials of the US Treasury.
Plans are also underway to collaborate with money transfer institutions like Western Union as Facebook considers this a more affordable and faster way for those who don’t have a bank account to send and receive money.
Rumors of Facebook’s plan to build its own cryptocurrency emanated online a couple of months ago when The New York Times reported that the social media behemoth was working to launch one. The plan, according to the premium news publication, will allow WhatsApp users to send money to friends—a PayPal and Venmo kind of thing, but this time cryptocurrency.