Last week, multiple reports made rounds stating that social media networking giant Facebook will soon be rolling out its very own form of cryptocurrency.
Likely to be named GlobalCoin, this rollout could be as early as next year per the reports. The currency would initially be launched in just around a dozen countries and Facebook may start testing it by the end of this year. Here is all the information we know so far:
- Facebook’s GlobalCoin will be a different format as compared to most other digital payments systems, as it would enable consumers to be able to use the currency even if they don’t have a bank account.
- The currency will enable Facebook users to change all currency directly into its digital coins, which can then be spent through the platform. The GlobalCoin can then be used to buy things on the Internet and in other outlets, or even to transfer money to another user. For this purpose, the company is reportedly in talks with multiple financial institutions as well as online merchants to facilitate and accept payments in GlobalCoins, in return for a lower transaction fee.
- Since Facebook acquired WhatsApp in 2014, the possibility of money being sent through Whatsapp may well become a reality soon with the GlobalCoin. At Facebook’s developer conference last month, Founder and CEO Mark Zuckerberg said: “I believe it should be as easy to send money to someone as it is to send a photo.” The GlobalCoin could also be used for shopping through Facebook-owned Instagram.
- The company reportedly also has plans to pay users fractions of a coin for activities such as viewing ads and interacting with content related to online shopping, similar to loyalty schemes run by retailers.
- Reports also say Facebook is looking to peg GlobalCoin’s value to a basket of established currencies, including the US dollar, the euro, and the Japanese yen, to stabilize the value of the digital currency. The company is currently looking for $1 Billion in funding to support the project and has held talks with payments giants including Visa and Mastercard.
- A Barclays Internet analyst had said in March that the cryptocurrency could contribute as much as a whopping $19 billion in additional revenue to Facebook by 2021.
Tech and Fintech analysts from around the world will be on the lookout for the GlobalCoin and whether or not it ends up transforming online shopping and payments as we know it.