Facebook, the tech giant firm launching its own new cryptocurrency coin is one of the biggest news for the crypto markets. Why should it not be? The coin is supported by a popular firm that has massive users on its platform.
Recently, Facebook announced its launch of GlobalCoin, a crypto project that was kept secret for a long time. Facebook tried to hide the information but could not; many sources started reporting about it and created a lot of speculation in the market. Now when sources revealed it, it has created a big headline, and most of them started predicting, whether there is a good or bad thing? We should invest in it or not, or whether to avoid it?
Facebook still needs to reveal the launch date officially to public, even before Facebook could come with this news, media sources already reported to and are continuing to receive updates through known sources from the past half year onwards. They have even imagined a partial picture of how Facebook wants to exploit the blockchain technology.
A team headed by PayPal’s former president David Marcus is developing an asset powered by a digital currency which is particularly developed to work within the current messaging infrastructure of the organization such as WhatsApp, Facebook Messenger, and Instagram.
One of the largest tech firms in the world is Facebook; it has developed the biggest social network in the world. Facebook has registered users of 2.38 billion on the Facebook platform alone and Facebook developing and the digital currency, or any other token is a big thing as most of its users might use them, and leads to mass adoption.
BBC reported that Facebook intends to launch a digital payments system across dozens of countries within the first quarter of 2020. The tech giant company wants to test its cryptocurrency, internally referred to as GlobalCoin, and they want to start the testing by the end of 2019. Facebook is hopeful of highlighting its plan in more detail in summer and has even discussed with Mark Carney, the governor of Bank of England.
Facebook is holding talks with top-level officers of the financial world, and by examining the legal side of cryptocurrency, one thing is for sure that the social media firm is planning to design something big, bigger than a utility token. They truly want to develop a cryptocurrency that can be lead to adoption.
Facebook’s interest in the fintech industry was first signaled by Facebook back in 2017. The first sign of Facebook preparing distributed ledger technology was noticed in December 2017, when Facebook recruited David Marcus, the board of directors of Coinbase a cryptocurrency exchange of US.
During that period, David Marcus was the vice president of Facebook’s messaging product. The two largest messaging products of Facebook are namely Facebook Messenger and WhatsApp. He was asked to concentrate on blockchain in May 2018. Marcus was also the president of PayPal, the popular online payment company of the US, and he is strong in solving the technical issues relating to this category.
If the reports are correct, then the GlobalCoin design might challenge the leading cryptocurrencies of the world such as Bitcoin, Ripple, and Ethereum. This could also be a bit of investment problem if we think something else to happen. If GlobalCoin the crypto project of Facebook does become a mainstream digital currency, then it might attract more investors and thus, might allow a lot of cash to flown in across the markets. Simultaneously, the GlobalCoin might be a big threat to Bitcoin.