Facebook Inc. is planning to introduce its own cryptocurrency in 2020, enabling users to make digital payments in multiple countries.
The currency ‘GlobalCoin’ will allow around 2.4 billion users to change dollars and other currencies into digital coins.
The coins will be helpful to purchase things on the internet or in shops. It also helps to transfer money without requiring a bank account.
Mark Zuckerberg, last month met the Mark Carney, Bank of England governor, to discuss the strategies.
However, Zuckerberg has also deliberate the plan, known as Project Libra, with United States Treasury officials. And also talks with money transfer firms, comprising Western Union, to develop safe, cheap ways for users to send and receive payments. According to the last year report, Facebook is working on cryptocurrency which will allow users to transfer money by using WhatsApp. However, it is encrypting the mobile messaging app.
To stabilize the digital currency Facebook is looking to pin its value to a basket of recognized currency. It may include the US dollar, Japanese yen, and the euro.
The company is also looking to paying peoples fractions of a coin for several activities. In may include viewing ads and communicating with content-based online shopping.
Though, experts claim that regulatory concerns and Facebook’s data privacy are the highest hurdles for currency success.
“Facebook is not governed similar to the banks, and the cryptocurrency industry is, by definition, unregulated,” said Rebecca Harding.
“In the UK, there are no official laws that regulate the market because cryptocurrencies are not lawful tender. Facebook had also issues with defending user data in the past few years. And this may well be a concern for it as it attempting to provide guarantees to users that their information is safe.”
However, it is said that the data of around 87 million users had been using wrongly. This is due to target ads for Trump in the 2016 United States presidential election.