Facebook to Launch its Cryptocurrency “Globalcoin” by 2020

As per a recent BBC article, Facebook is planning to launch “Globalcoin” by the first quarter of 2020. Initially, it will be set up in a dozen countries. Internal testing of the currency will start by the end of this year. Further plans will be released by Facebook in the coming days.

It is reported that Facebook is raising as much as $1 billion to fund Project Libra. Project Libra aims at paying users through micropayments for activities such as viewing ads and interacting with content related to online shopping etc, sharing content, etc.

Project Libra has seen good momentum in recent days, some highlights are provided below:

• Founder Mark Zuckerberg met Bank of England governor Mark Carney last month to discuss the opportunities and risks involved in launching a crypto-currency.
• Opinions on operational and regulatory issues were sought from officials at the US Treasury.
• “Libra Networks” got registered in Switzerland.
• Discussions are ongoing with money transfer firms like Western Union, Visa, and Mastercard
• According to the FT, Zuckerberg has also held talks with Winklevoss twins, Cameron, and Tyler, founder of the cryptocurrency exchange, Gemini. Gemini is one of the first two companies to win regulatory approval to launch a digital currency pegged to the US dollar, the Gemini dollar.
• The firm has also been discussing market creation and liquidity with Jump and DRW, top Chicago-based high-frequency trading firms. Source: Coindesk
• Facebook recently acquired Blockchain Startup Chainspace specialized in Smart Contracts

Facebook is expected to build relationships with banks, brokers and online merchants enable users to change fiat into Globalcoin. Globalcoin will be pegged to a basket of established currencies, including the US dollar, Euro, and Japanese Yen.

Facebook’s major roadblock will come in the form of regulatory issues considering its poor track record on data security.  It might also face regulatory issues in its major markets, for example, India.