Facebook is reportedly developing a digital payments system that will be rolled out in several countries by the first quarter of 2020. The company has reportedly named this system as ‘GlobalCoin’
While Google , Microsoft, IBM,and Samsung have made good progress with their blockchain-related products, Facebook Inc may make the biggest splash yet with its own digital asset.
Facebook hopes to start testing “GlobalCoin” by the end of 2019 and is currently holding talks with top officials from trading firms and banks.
Facebook has reportedly met with high profile trading firms, crypto currency exchanges and bank officials to get the ground reality about the users ability to exchange currencies over conventional currency and make payments.
This secretive initiative has been code named as ‘Project Libra’ and will start of with low transaction fees.
This will be facebook’s second venture into cryptocurrency, nearly 10 years after digital currency Facebook Credits was shut down after an unsuccessful two years.
After initial research works facebook was surprised with the kind of cryptocurrency investments and was given a go head signal to develop its own system.
While the product was first slated to be introduced in India, new reports state that the coin will be available through Whatsapp, which sports two billion active users, and will be a payments mechanism and a medium of exchange for the social media ecosystem.
It was also reported that Mark Zuckerberg was mandated to sit down with Gemini’s Winklevoss Twins, his peers-turned-rivals at Harvard and other Facebook co-founder claimants, to talk crypto.
Galaxy Digital’s Mike Novogratz said Facebook is wildly important for the ecosystem.
‘If the technology company could successfully build the product and drive adoption, they will have a chance to transition from a social network to one of the largest financial services companies in the world. This move would allow them to take a small percentage on each transaction and reduce the dependency on their advertising-based model’ — he added.