Facebook- The tech giant company finally set to launch its own digital currency by 2020. Facebook was making news over its cryptocurrency coin and revealed the project name ‘GlobalCoin.’ The development news was reported by the BBC.
The testing of Facebook’s digital currency ‘GlobalCoin’ will be carried out by the end of 2019. The more detail specification of the plan will be provided by Facebook in the summer of 2019. The Facebook CEO, Mark Zuckerberg has contacted Governor Mark Carney of Bank of England. Mark Zuckerberg, in the previous month, held a meeting with the Governor and discussed about the challenges and issues revolving around the launch of is a crypto project.
He further asked officials of the US Treasury to give some advice relating to operational and regulatory problems.
Meanwhile, Facebook is speaking to payment service providers companies and also spoke popular firms like Western Union, Mastercard, and Visa. The firm is seeking for fast, secure, and less-cost effective methods for users to transfer and receive cash without a bank account.
It had also requested these payment service companies to invest in its fiat to crypto-based project. Facebook’s crypto project was earlier referred to as ‘Project Libra.’
Facebook, in order to successfully develop, its much secret crypto project, started the recruitment process to join their crypto team. According to reports, the social media firm is considering to roll out its digital currency GlobalCoin across various countries within the first quarter of 2020.
Working on Facebook’s Crypto Currency
The main objective of Facebook is to develop a virtual currency that offers easy and secure ways for making payments for users, irrespective of the user having a bank account or not.
The popular social media firm with massive user base has also acquired WhatsApp and Instagram and is expecting to stop the current networks by breaking down obstacles relating to finances, lowering consumer’s costs and competing with banks.
Facebook’s plan of developing its own crypto project was first revealed in December 2018, and was internally named as ‘Project Libra.’
The crypto project will work together with banks and merchants to allow people to exchange dollars and other fiat currencies into its digital coins.
Facebook continues in talks with several online retailers to accept the digital currency as a payment mode for fewer transaction charges.
Some Issues relating to a crypto project
Over the past years, Facebook is facing huge criticism for its inappropriate way of dealing with the private data of users, and regulations are more likely to monitor its crypto project launch.
Prior to this, Facebook CEO was asked to respond to some important questions relating to its crypto project by US Senate and Banking Committee namely they wanted to know the consumer safety offered to users, techniques used to safeguard the data and how the digital currency will function. The Committee was also worried about Facebook’s privacy problems and mentioned that the firm should make use of relevant security tools to protect the user funds from cyber- hacks.