Facebook to launch GlobalCoin currency in 2020

Facebook has released further details about its highly touted cryptocurrency.

This would enable its 2.4 billion monthly users to change dollars and other international currencies into digital coins, which could then be used to make payments or transfer money without needing a bank account.

Facebook is looking to set this up in about a dozen countries by the first quarter of 2020. And the social media giant wants to start testing ‘GlobalCoin’, the value of which would be pegged to a basket of established currencies, including the US dollar, the euro and the Japanese yen, by the end of this year. Founder Mark Zuckerberg has spoken to Bank of England Governor Mark Carney regarding the opportunities and risks involved in launching a cryptocurrency. His company has also sought advice on operational and regulatory issues from officials at the US Treasury.

Trojan horse

GlobalCoin is the trojan horse that will bring blockchain adoption to the masses, according to José Maria Macedo, Head of Advisory at blockchain advisory firm, AmaZix. "Through Facebook and Whatsapp, potentially hundreds of millions of people will use it. It has the potential to be bigger than the US dollar in terms of numbers of users,” he says.

"Mark Zuckerberg has looked beyond the hype, and seen the potential of cryptocurrencies for low-cost, reliable cross-border transfer of payments. Startups are set to transform industries from banking to the supply chain. Companies large and small, like Facebook, are looking at how blockchain can help their business in this new digital era, and we are just at the start of the journey of this fledgling industry.”