Facebook Is Likely To Launch Its Digital Currency By The Month-End
It is no more news to the crypto world that the social media giant Facebook is reportedly working on its native cryptocurrency. Besides, during the Facebook developer conference earlier this year, CEO Mark Zuckerberg spoke that payments would be an important part of the company’s future business.
According to the latest report from The Information Facebook is most likely to launch its digital currency by the end of this month i.e. June 2019. It looks like Facebook wants to get an advantage by being early in the payments game before other player chip-in.
The latest report comes just after Facebook registered its FinTech startup named Libra Networks in Switzerland, last month. The report also notes that post the launch, Facebook has asked its employees to take their salaries in the form of the new digital currency.
Besides, Facebook will be collaborating with third-party players who are willing to act as “nodes” and maintain its cryptocurrency network. However, the social media giant will be charging $10M upfront for anyone willing to join as a partner.
The idea behind getting third-party players is to somewhat decentralize the control of its payment network. Over the last year, Facebook has faced a lot of criticism from lawmakers, users, and regulators over compromising the “privacy” of user data, especially after the Cambridge Analytica scandal.
Note that Facebook’s native cryptocurrency dubbed as the GlobalCoin is most likely a stablecoin pegged to the U.S. Dollar. Besides, the cryptocurrency will be running on a permissioned blockchain that is accessible only to its partners serving as “nodes” who can validate the transactions.
Over the last few months, Facebook has been talking to several merchants and retailers who could possibly integrate its cryptocurrency payments to their platform. This way the Facebook plans to push enough liquidity for the digital asset upon launch. Besides, the company is also having a word with different crypto exchanges to list its crypto token.
Although some economists and banks have argued that Facebook isn’t regulated the way banks are and hence it will be big trouble to manage the Facebook Coin on a large scale considering issues relating to money laundering.
According to a BBC report, Facebook CEO Mark Zuckerberg reportedly met Mark Carney, the Bank of England governor, in April 2019. Zuckerberg outlined his plans about the use of crypto assets and how they would help to break the financial barriers while reducing costs.
Crypto industry proponent and CEO of Galaxy Digital Holding – Mike Novogratz said that “Facebook is wildly important for the [crypto] ecosystem”.