Facebook Is In the Process Of Launching Its Own Cryptocurrency

Already one of the largest social media platforms in the world, Facebook is dreaming of reaching a new height by officially announcing its plan to move into finance. But not just any regular financial services, however. Mark Zuckerberg’s company is planning to tackle cryptocurrency. 

GlobalCoin

“GlobalCoin” is what Facebook wants to name this new currency, and the company has been actively negotiating with U.K. and U.S regulators to launch the cryptocurrency. If everything goes right, according to reports, by 2020, Facebook would have its own payment system set up and working in dozens of countries.

Known internally within Facebook as ‘Project Libra,’ the company seems to be serious about fielding its own spin of the blockchain tech. Whether this is a great thing or not depends on how you view the matter, but those who are concerned with this news have valid reasons to do so as Facebook does not have a good track record of respecting its users’ privacy. 

Already In Motion

Facebook has already talked to the governor of the Bank of England - Mark Caney - and officials from the U.S. Treasury about the prospect. And by the end of this summer, you could even see the release of detailed plans regarding the matter if things go well.

Between Facebook’s ‘GlobalCoin’ and the infamous ‘BitCoin,’ however, Facebook’s version is known as a ‘Stablecoin.’ The currency is affixed to the dollar instead of BitCoin.

Having two billion users across a number of services, Facebook has already had a large user base to start with. These services are numerous, including popular ones like WhatsApp and Instagram. With its popularity, the company may not find too troubling securing users and transform its brand of cryptocurrency to become mainstream. In China, there’s already a business that’s operating in pretty much the same way that Facebook is trying to: WeChat.

WeChat essentially allows users to chat, play games, and do online shopping without ever leaving its site. Generating massive revenues simply because it contains virtually every service that an ordinary user could ever seek for online.

An Evolutionary Step

Mark Zuckerberg, commenting on the matter, stated that he and the company believed that e-commerce was the next step that companies like Facebook must take. The evolution of its advertising-based business model, he said.

But the path to such an outcome is riddled with challenges. Already struck by multiple scandals regarding privacy and spread of fake news, Facebook would definitely see resistance as it tries to push for something as ambitious as a cryptocurrency or an online payment system.