Facebook has been actively working on its new venture, which it says, will ‘compete with banks.’ The secretive cryptocurrency endeavor was earlier taking shape through hiring drive for the team. Recently, it was formally inducted as a subsidiary in Switzerland under ‘Project Libra‘ on 17th May 2019.
Reportedly, Facebook is planning to launch its cryptocurrency named ‘GlobalCoin’ in a dozen countries by the first quarter of the next year in 2020. Furthermore, the social media giant plans to test the cryptocurrency by the end of this year.
The CEO and founder of Facebook, Mark Zuckerberg, has spoken with the Governor of Bank of England, Mark Carney about the timelines and procedures.
Project Libra – GlobalCoin
Furthermore, creating a cryptocurrency will be less complicated than adding actual value to it in dollars. Hence, Project Libra will seek to establish partnerships with existing banks and payment providers to enable the exchange between FIAT currency and GlobalCoin. Reportedly, it is holding talks with Western Union and taking advice from the US Treasury Office.
The US Senate and Banking Committee wrote an open letter to Facebook CEO asking the details of their digital currency projects. Their concerns surround the fact that, if Facebook releases a digital currency, people around the world will transact in it. The Committee also expressed concerns regarding the privacy issue on Facebook. The firm must also take appropriate security measures to safeguard the funds from cyber-attacks.
Garrick Hileman, a researcher at the London School of Economics, noted that GlobalCoin would be one of the significant events in the history of cryptocurrencies. According to his estimates, 30 million people use cryptocurrencies compared to Facebook’s 2.4 billion users.
The GlobalCoin is expected to be released as a ‘stablecoin‘ to avoid volatility and speculation. It is expected to reduce the cost of transactions for users and also bring in revenue worth billions into Facebook. It will primarily benefit the unbanked population of the world with access to the internet would be able to send and receive value anywhere in the world.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com