Facebook, the social media giant, is on track to launch its own cryptocurrency named “GlobalCoin”. GlobalCoin is set to launch in the first quarter of 2020. Facebook is looking to make cryptocurrency mainstream by letting the users use cryptocurrency through its network.
GlobalCoin’s Development Timeline
It all began with ‘Project Libra’ as termed by the company in 2017, for checking the feasibility of launching a cryptocurrency in the market. After positive results, Facebook gave a thumbs up to the development team to start with the development of the cryptocurrency. The intent of developing their own cryptocurrency was evident by Facebook since January 2018, where they banned all ads of Bitcoin and Cryptocurrencies on their website. This project was initially termed as ‘FaceCoin’, which was changed to GlobalCoin.
Facebook is looking to launch its cryptocurrency in a select number of countries in the first quarter of 2020, to test the waters.
Concern over Facebook’s Market Entry
While it is a great opportunity for Facebook to enter the market, it has to look confident and have knowledge of what has to be done from the get-go. For that, Facebook has resorted to some unusual sources of advice. Facebook is looking to get its cryptocurrency on platforms like Coinbase and Gemini for the exchange and storage of assets. Gemini, the cryptocurrency exchange website, stands out as it is run by Zuckerberg’s former legal rivals, the Winklevoss twins. Gemini is a platform that is defined by its strict KYC and stern regulations. It isn’t certainly a friendly website for new users jumping from Facebook. Also, the relationship between Zuckerberg and the Winklevoss twins after the lawsuit is not known.
Facebook has also resorted to advice from the Governor of The Bank Of England, Mark Carney.
Impact Of GlobalCoin on Crypto
Facebook has around 2.4 billion monthly users. And Facebook is aiming to increase Crypto users from 30 million to 2.4 billion users. While it seems like a far-fetched idea, a company like Facebook is the one to make it come true. This would mean that any Facebook user could do the transaction with cryptocurrency. This would truly mean that cryptocurrency would come into the mainstream.