Facebook is reportedly adding a digital payments system to its platform that will be rolled out in several countries in the first quarter of 2020. The CEO of Facebook Mark Zuckerberg has been seen holding meetings with trade firms and officials before starting the test of “GlobalCoin” by the end of 2019. Multiple reports have tracked the company’s meeting with banks, firms, and global merchants since the digital currency was first reported in 2018.
The CEO of Facebook last month met the Governor of the Bank of England, Mark Carney, to discuss the plan. The company has also discussed the project with US Treasury officials and money firms like Western Union to develop a cheaper and safer way to transfer money on its platform. A report last year said that Facebook is working on a cryptocurrency that will enable users to transfer and receive money through Whatsapp– Facebook’s encrypted mobile-messaging app.
“Payments are one of the areas where we have an opportunity to make it a lot easier, I believe it should be as easy to send money to someone as it is to send a photo,” said the CEO of Facebook last month.
In order to stabilize the cryptocurrency, the company is looking to link its value with few established currencies including, the US dollar, the euro, and the Japanese yen.
Here are some facts that you should know about the digital currency before it finally gets rolled out:
- Facebook’s GlobalCoin is different from other payment options- users can make payments even if they don’t have a bank account.
- The currency will allow Facebook users to convert dollars and other digital currencies directly into its digital coins.
- The GlobalCoins could also be used while purchasing things on the internet or making online payments.
- The possibility of making payments through Whatsapp may become a reality with Facebook’s GlobalCoins. A news report last year reported that Facebook has been working on a digital currency project which will allow users to transfer the GlobalCoins through Facebook.
- Facebook also plans to reward its users with a fraction of coins for activities such as watching ads and engaging with the content related to online marketing.
- Facebook is also holding meetings with several online merchants to accept the GlobalCoins as payment in return of low transaction fees.
- Facebook is looking for a funding of $1 billion to support the project and has held meetings with payment giants including Visa and Mastercard, according to the reports we received.
- An Internet analyst said in March that the cryptocurrency could contribute as much as $19 billion in additional revenue to Facebook by the end of 2021.
- Facebook has reportedly discussed with the US Treasury about the process of identity checks and the way to reduce money laundering risks.
Facebook was much longer expected to make a move in the financial services as the company hired the former PayPal president David Marcus to handle its messaging app in early 2014. Marcus, the board member of crypto exchange Coinbase is the head of Facebook’s blockchain initiatives, the technology on which GlobalCoins work.
However, with all the privacy security issues that Facebook experienced recently, we will see how securely the new concept works. There are a lot of questions in everyone’s mind that would it be secure to do a transaction through Facebook, would it be safe from hackers?
It would be amazing to see how the new concept of Facebook will hit the digital world and how the quick transaction of money like sending an image would impact the users. Thanks for reading the article, feel free to share your views about the new move of Facebook in the comments section.