According to BBC reports, Facebook which is a vast social platform, is planning to launch its own cryptocurrency called ‘’GlobalCoin’’ in the year 2020.
Facebook is set to introduce the new crypto based payment system by the first quarter of the year 2020 in dozen countries. It will try-out the process by the end of this year, this is according to the news reports and publications.
Regarding the opportunities and regulatory issues for the new process internally referred as ‘’Project Libra’’ Facebook went to seek official information from authorities of the U.S. Treasury and Mark Carney who is the governor of the Bank of England.
According to the reports about the Facebooks cryptocurrency new payment system, the details about it are to be released in the next few months.
Facebook has also been reported by the Financial Times to be in talks with crypto exchanges like Coinbase and Gemini seeking to prepare third-party regulated platform for its users to be able to exchange digital assets anonymously held on online wallets.
Financial Times reports that Gemini is a highly regulated exchange, this will force Facebook to request urgently to use its services since, and its regulations will be one of the obstructions with the new digital assets. Especially where Gemini is a firm owned by Mark Zuckerberg’s old legal contenders namely, Cameron and Tyler Winklevoss.
Reports said that Facebook has been talking about creating markets and availability of digital assets in the market with high-frequency trading firms like Jump and DRW, which are the top-based trading firms in Chicago.
Reports indicates that Facebook has been discussing with payment firms like visa, MasterCard and western union to support and fund its fiat- based digital assets. The new project which was the stablecoin –based payment platform, internally referred to ‘’Project Libra’’ aimed at the development of cryptocurrency by enabling the firm’s billions of users to send money and make online purchases.
According to Reuters reports, on May 2 Facebook launched a new company, namely’’ Libra Networks’ ‘in Geneva. This coincides with their internal cryptocurrency that defines the firm’s first attack on the block chain technology.
Along with visa and MasterCard, Facebook reportedly discussed with Financial Service Firm First Corp to raise a total amount of $1billion as a security due to default in the payment of assets for stablecoin against volatility. Also talked to e-commerce firms to raise funds and gain support for the stablecoin.