- Facebook is preparing to launch its own cryptocurrency next year
- The cryptocurrency is internally being called GlobalCoin.
Facebook is preparing to launch its own cryptocurrency next year — which is internally being called “GlobalCoin.” Later this summer, Facebook is going to announce more details about the cryptocurrency. And it is expected to start being tested by the end of this year, according to BBC.
Essentially GlobalCoin would be a secure and affordable way to make payments even if someone does not have a bank account.
In order to do this, Facebook would partner with banks and brokers in order to set up the ability to convert dollars and international currencies into digital payments. By the first quarter of 2020, Facebook is expected to have the cryptocurrency available in about a dozen countries.
Facebook CEO Mark Zuckerberg has reportedly met with Bank of England governor Mark Carney to discuss the opportunities and risks. And Facebook has also been in discussions with officials at the US Treasury about operational and regulatory issues. Plus Facebook is also in talks with financial firms like Western Union as it is looking for seamless ways for people without bank accounts to send and receive money.
And Facebook is in talks with online merchants for accepting the currency as payment in exchange for lower transaction fees.
This would not be the first time that Facebook tested a virtual currency. About ten years ago, Facebook launched a virtual currency called Facebook Credits, which could be used for making digital purchases within apps like FarmVille. But Facebook ended up phasing out Facebook Credits a couple of years later.
Bitcoin — which is one of the most popular cryptocurrencies — has been known for wildly fluctuating in value. In order to prevent this from happening with its own currency, Facebook may design it as a “stablecoin.” This would minimize volatility as it would be pegged against the U.S. dollar.
