The BBC recently reported that Social Media giant Facebook is set to release its own cryptocurrency in 2020. The name of the cryptocurrency is dubbed “GlobalCoin”. Facebook to release Globalcoin in 2020
It was announced on Friday, by the news and broadcasting organization, that Facebook is looking to start trials by the end of this year. The company’s aim is to launch the cryptocurrency-based payments system in “a dozen countries” by the first quarter of 2020 plan.
The name of this project is internally referred to as “Project Libra”. In order to achieve regulatory compliance, Facebook has apparently sought advice from Mark Carney, the Bank of England governor, and officials of the U.S. Treasury regarding opportunities and regulatory issues for the initiative.
The report stated that more details about Facebook’s crypto plan will undoubtedly to be revealed in upcoming months.
In order to have third-party, regulated platforms ready for users of its coin to store and exchange the asset, Facebook has also been in talks with both the Coinbase and Gemini exchanges. This news comes from The Financial Times, which cites “two people familiar with the matter” as the source of the information.
The FT notably points out that as regulation will be one of the key challenges that Facebook will encounter with the new cryptocurrency, it will be searching for a highly regulated exchange. Ironically, Gemini is a highly regulated exchange, but is founded by Mark Zuckerberg’s previous legal combatants, Cameron, and Tyler Winklevoss! Despite the history between the men, Gemini’s sic adherence will likely appeal to Facebook.
Sources have revealed that the company has also been in discussions with top Chicago-based high-frequency trading firms, Jump and DRW, about market creation and liquidity.
Facebook to release Globalcoin in 2020. This news follows recent reports that Facebook is looking for backing and funding of its planned fiat-based cryptocurrency. To achieve this goal, the company has been in talks with several payment service providers, including Western Union, Visa, and Mastercard.
One of the aims of the project is to develop a cryptocurrency which will help the billions of Facebook users to transfer money to each other, and to make online purchases.
Facebook registered a new entity called “Libra Networks” in Geneva, on May 2, which will “provide financial and technology services and develop related hardware and software.”
It was reported last month that in order to fund the crypto stablecoin project, Facebook is looking to raise as much as $1 billion.