Reports from BBC published today, 24th of May, state that Facebook will be launching its own Cryptocurrency next year. The payments focused Crypto has been dubbed the ‘GlobalCoin’.
Facebook Consulting Various Entities About Forthcoming Launch
According to the BBC reports, the social media giant is looking to launch the digital currency in a dozen countries within the first quarter of 2020 with the testing set to be carried out by the end of this year. Although the digital currency, internally referred to as ‘Project Libra’ is currently called the GlobalCoin, there is a chance that the name may be changed upon completion of the project.
According to the report, Mark Zuckerberg, the social media giant’s founder, has been in talks with Mark Carney, the governor of the Bank of England, discussing the opportunities and regulatory risks involved in the launch of the project. In addition, the firm has also reportedly held discussions with officials from the Unite States Treasury on matters regulations and operations. According to the BBC, particular areas of interest in the discussions have been the mitigation of money laundering risks and procedures for identity checks.
Also referred in the report are the on-going discussions between the firm and Western Union, a global payments services provider. These discussions are part of the firm’s research on how to provide access to affordable money transfer services to the unbanked.
Facebook seeking $1 Billion Investment For The Project
The forthcoming launch of the firm’s native digital currency will purportedly interrupt or completely avoid banking networks therefore removing financial barriers and reducing consumer costs. The BBC report however notes that the firm will have to partner with financial institutions and brokers across the globe in order to gain access to fiat on-ramping and currency exchange services. This seems to be the main reason for the social media giant creating Libra Networks LLC, a financial technology firm, which it registered in Geneva in the beginning of the month.
Rumours that the firm was looking into the integration of a digital currency for its WhatsApp platform were first made late last year. More supposed details on the ultra-secretive project came out in February claiming that the project would be a stablecoin backed on a fiat currency.
Notably, the firm is supposedly looking to completely change its messaging infrastructure, integrating WhatsApp, Instagram and Messenger under one banner. Through the integration of the three wholly owned apps, the firm will be building its digital currency potential to about 2.7 billion users every month. In order to carry out this project, Facebook has reportedly approached various possible investors which include Visa, Mastercard and Tim Draper from VC. The firm is reportedly aimed at raising $1 billion for the project.
US Senate And Banking Committee Enquiries
Earlier this month, the firm received a letter from the US Senate and Banking Committee enquiring about the alleged Crypto Project. The Committee through the letter was seeking information on how the firm will ensure protection of its consumers and how it will safeguard financial information.