Facebook is no longer hiding its plans to release a virtual currency. The plans for creating a cryptocurrency is now a reality as the company announced recently. The digital payment will become operational at the beginning of 2020. However, the media giant plans to test the new GlobalCoin before this year rounds off.
From the reports we got, the company has discussed with Governor Mark Carney of the England Apex bank. Meanwhile, the company’s Founder, Mark Zuckerberg, has been busy gathering ideas and strategies. His recent meeting with the Central bank’s governor was to discuss the opportunities and risks of the crypto plans. Apart from the bank boss, Mark has gone to the US Treasury to find out more about the regulatory issues that such plans will likely face. Facebook will share more details with the public as it progresses with the plans.
Facebook Has Big Plans for the Crypto project
Let’s recall that last year, Facebook banned crypto advertising, but it seems that the company will start it themselves now. It plans to equip the customer with a payment platform and shake other networks. By breaking down some financial barriers, the company will likely affect other crypto exchanges. Already, Facebook has swallowed the likes of Instagram and Whatsapp. Now, it has set its fangs on Ripple and other currencies already existing in the industry.
We’ve learned that the new project may be a stablecoin. Also, the company will peg it to the dollar or the currency of countries that will accept it. According to our information, GlobalCoin will operate on a private and centralized blockchain which Facebook will own and control. Therefore, it will not be like Bitcoin or some P2P digital currencies running on a decentralized blockchain.
The Authorities Are Concerned About the Facebook Crypto Asset
We’ve learned that many players in the industry are already questioning the plans of the social media giant. An open letter from the United States Senate questions the Facebook founder on how the asset will work. Also, the Senate wants to know how the company will protect the consumers and how it will guide people’s finances and data.
We can’t say we blame the Senate for making such proactive moves. Already, Facebook is one of the companies making waves on the Internet. Its users every day rises above 1.5 billion, and as such, many people may likely join online crypto trading now. So, the GlobalCoin might be recording a market of 1.5 billion users once it launches.
But, the community is asking seriously if Facebook can be a player in the financial industry. Given the data abuse and network breaches which the company has faced for a while, can it protect people’s money? One clear answer to that question is no!
It is not also helpful that Facebook co-founder called for a breakup of the company. So, can people still trust and use Facebook assets once it comes out? We’ll love to see the response then.