According to BBC, Facebook is planning to launch its own cryptocurrency next year named “Global Coin”. starting in the first quarter of 2020.
The company has been in contact with US financial regulator for quite a couple of months and with the Bank of England. It can outcome wechat in China which allow the user to chat, play games and shop on the app.
What is the cryptocurrency?
Cryptocurrency is a digital currency built with cryptographic protocols that make transactions secure and difficult to fake.
The most important feature of a cryptocurrency is that it is not controlled by any central authority: the decentralized nature of blockchain makes cryptocurrency theoretically immune to the old ways of government control and interference. Cryptocurrencies make it easier to conduct any transactions, for transfers are simplified through the use of public and private keys for security and privacy purposes. These transfers can be done with minimal processing fees, allowing users to avoid the steep fees charged by traditional financial institutions.
09 BENEFITS OF CRYPTOCURRENCY
- Asset Transfers.
- More Confidential Transactions.
- Transaction Fees.
- Greater Access to Credit.
- Easier International Trade.
- Individual Ownership.
- Strong Security.
The company has to face many hurdles to launch crypto-currency could be designed to be a “stable coin” with a value pegged to US currency in an attempt to minimize volatility.
The company launched LIBRA NETWORKS to manage payments and Blockchains systems. The Facebook cryptocurrency would be tied to the US dollar. According to a report in The Wall Street Journal earlier this month, the social media giant is “recruiting dozens of financial firms and online merchants” towards its cryptocurrency-based system that would use a digital coin similar to Bitcoin. The New York Times reported in February that Facebook had a team of 50 people working on its virtual currency project. The company is potentially interested” in putting the Facebook login on the Blockchain technology.
According to Zuckerberg, Blockchain could give users more powers when granting data access to third-party apps.