The long-awaited Facebook cryptocurrency might be launched later this month and the virtual asset will enable people to process transactions directly from the social media platform. Facebook employees will also be able to opt-in to be paid with the digital currency instead of fiat, according to The information’s report on June 5, 2019.
The cryptocurrency, in question, is reportedly called, GlobalCoin and it was created to function as a borderless currency without transaction fees. It will be aggressively marketed in developing countries whose fiat currencies are more volatile. Physical portals or kiosks will also be provided for users to purchase the asset using conventional cash.
Facebook Globalcoin to Differ from Bitcoin and Other Decentralized Assets
In the same vein, the rumored cryptocurrency will differ significantly from Bitcoin and other decentralized virtual assets. The later is as a result of the centralized nature of its blockchain since the system will be run by a number of companies. These companies will be charged a licensing fee of $10 million per partner and the funds obtained, will be used to back the cryptocurrency in order to stabilize its price.
It is, however, worthy to note that Facebook has not made any comments to confirm the rumors. On the other hand, if it holds an element of truth, then trust in its ability to manage people’s finances will not be the only thing the social media company will have to contend with, but also the possibility of their digital asset offsetting the volatility in some official currencies.
The news is coming after recent reports revealed that the company has communicated with global regulators, crypto industry players, amongst others in order to ascertain opportunity and regulatory issues for the virtual asset. The launch of GlobalCoin was also expected in 2020 and it’s trial by the end of 2019.