Facebook is still determined to dominate the world of cryptocurrencies. Months after creating a blockchain division, the efforts of this team seem to be bearing fruit and the famous “Facebook Coin” already has a name and estimated release date.
According to a report published by BBC, the cryptocurrency will be named “GlobalCoin” and will be available for use in a dozen unidentified countries by Q1 2020.
GlobalCoin: The new Stablecoin Created by Facebook to Disrupt the Crypto Ecosystem
Although GlobalCoin will be powered by blockchain technology, it will not be a typical volatile cryptocurrency, instead, it will be pegged to a basket of fiat currencies including dollars, euros, british pounds and other similar currencies.
Facebook’s strong secrecy regarding this project may also be nearing its end as they are expected to provide more details about the currency this summer.
Facebook has been working hard on the development of GlobalCoin. In addition to hiring a significant number of former PayPal employees, the team has engaged in conversations and consultations with various strategic entities including the Bank of England and the US Treasury.
Also, Facebook has been talking to an undetermined number of exchanges to promote trading and adoption of its cryptocurrency. Among the exchanges contacted one worthy of mention is Gemini, which was created by its former partners, the twins Winklevoss, with whom Mark Zuckerberg previously had legal disputes.
Facebook is also in conversations with companies specializing in money remittances to facilitate the conversion of GlobalCoin into fiat local currency without going through traditional banking procedures. Western Union is one of the companies contacted by Facebook according to the BBC.
Not Everyone is Too Happy About This Idea
Facebook’s idea of developing a cryptocurrency raised several alarms, especially because of recent scandals that revealed how social media behemoth had irregularly obtained and marketed private information from its users.
In an open letter addressed to Zuckerberg earlier this month, the US Senate and Banking committee asked Facebook’s CEO to clarify certain doubts about this initiative, showing that the project is in the government’s sights:
“The Wall Street Journal recently reported that Facebook is recruiting dozens of financial firms and online merchants to help launch a cryptocurrency-based payments system using its social network. Last year, Facebook asked U.S. banks to share detailed financial information about consumers. In addition, privacy experts have raised questions about Facebook’s extensive data collection practices and whether any of the data collected by Facebook is being used for purposes that do or should subject Facebook to the Fair Credit Reporting Act”.
So far, Facebook has refused to provide any kind of comment