Arguably the most popular social network, Facebook is looking to branch out. Forbes has reported that the popular social media giant, which owns both Instagram and WhatsApp, will be launching a new cryptocurrency inspired by Bitcoin called “GlobalCoin.”
GlobalCoin will launch for testing purposes by the end of 2019 and is set to be rolled out in up to 12 countries in 2020.
David Marcus, the former president of PayPal, is in charge of creating this asset-backed cryptocurrency, which will be designed to function with Facebook’s existing messaging infrastructure, which includes WhatsApp, Instagram, and Facebook Messenger.
Ahead of the launch, Facebook’s CEO and founder, Mark Zuckerberg, had a meeting with Mark Carney, the governor of the Bank of England, to talk about the inner workings of GlobalCoin along with the risks and regulations that need to come with it.
Forbes states that Facebook’s GlobalCoin is aiming to rival the most popular cryptocurrency, Bitcoin. However, many experts believe that GlobalCoin will actually have significant benefits for Bitcoin.
For instance, Facebook has 2 billion active users worldwide who will now be introduced to cryptocurrency in general. Spencer Bogart, a partner at venture capital firm Blockchain Capital, reportedly said, “Once [Facebook users] own [Facebook’s GlobalCoin], it will be like being on the internet so people can spin-out and start owning Bitcoin, Ethereum. Bitcoin has gone from zero users ten years ago to somewhere between 30 million to 100 million–the estimates are tough. And Facebook has billions of users.”
Facebook aims to create a digital currency that will offer affordable and secure ways of making payments, even if users don’t have a bank account. Facebook’s coin will be backed by blockchain technology, the same technology that supports Bitcoin. Blockchain works to reduce both the time and the cost of sending money across borders as it circumvents banking networks.
Only time will tell if Facebook’s GlobalCoin will rival Bitcoin, but overall, it’s sure to increase the popularity and awareness of all cryptocurrencies.
