A report by global media outlet – BBC News says Facebook is finalising plans to launch its own cryptocurrency by 2020; as part of its global push into payments.
The social media giant will set up a digital payments system across several countries by the first quarter of 2020; with an intial test phase of the cryptocurrency dubbed ‘GlobalCoin’ to begin by the end of this year.
Facebook CEO Mark Zuckerberg is reported to have met with Bank of England Governor Mark Carney to discuss the opportunities, risk and studies involved in launching a cryptocurrency.
The CEO known for his desire to launch network payment services, also met with officials of the United States Treasury to seek advice on operational and regulatory concerns .
Mark Zuckerberg says: “Sending money should be as easy as sending a photo.”
Further details on the Facebook Global Coin show that the company wants to create a digital currency to offer affordable and secure payments for all; especially the unbanked. Facebook also hopes to disrupt existing financial barriers, compete with banks and reduce consumer costs.
In a bid to ensure wider acceptability, talks with cryptocurrency exchanges, online merchants and firms to accept the currency as payment are already in place.
Divided Opinions Across the Crypto Community
While majority hail Facebook’s ‘GlobalCoin’ move as a huge plus for adoption; considering Facebook’s popularity, user base and other factors, it is surely a big determinant in the cryptocurrency adoption movement .
Despite these benefits, a core of the cryptocurrency community see Facebook’s move as another step back to centralization which goes against the pronounced principles of cryptocurrency (decentralization).
Particularly, Facebook has come under fire in recent times over its handling of user personal data and privacy concerns; even the US congress sent an open letter asking Facebook for info on the proposed coin launch, consumer protection, data security and how the currency will work.
In all, this isn’t the first time Facebook is exploring digital currencies or payments. The company had about 10 years ago created ‘Facebook credits’ – a virtual currency for in app purchases; however less than two years later the project was removed as it failed to gain wide traction.
Will Facebook get it right this time with GlobalCoin?
See other Facebook crypto stories here: https://btc.ng/news-in-brief/facebook-acquires-libra-trademark-for-its-cryptocurrency-payment-system/