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Facebook to unveil ‘GlobalCoin’ later this month

Benson Toti

US social media giant Facebook will unveil its secretive cryptocurrency project later this month, according to a report from online publication The Information.

Over the past several months, multiple media reports have suggested that Facebook is developing its own stablecoin, as part of an effort to tap into the lucrative online payments sector. The company is reportedly in talks with regulators in the US and other regions regarding the project.

According to The Information, Facebook has also approached dozens of financial institutions and other the companies with proposals to join “an independent foundation that will contribute capital and help govern the digital currency”. With this move Facebook aims to encourage trust in its payment system and reassure regulators. The news outlet attributed the information to unnamed sources briefed on Facebook’s plan.

The sources also said that the cryptocurrency, which will reportedly be called GlobalCoin, was designed to function as a borderless currency without transaction fees and that it would be “aggressively marketed in developing nations where government-backed currencies are more volatile”.

Earlier reports on the matter have also suggested that GlobalCoin will likely be focused on developing countries. Bloomberg, which first reported on Facebook’s cryptocurrency aspirations, said in its initial report that the company would initially be targeting India. Subsequent reports have suggested that Facebook might peg the stablecoin to a basket of fiat currencies, instead of a single one. The company has been reportedly looking to raise up to $1 billion from outside investors and plans to use the capital as collateral.

Some analysts and industry experts believe that that launch of GlobalCoin would provide a significant boost to cryptocurrency adoption, given the social network’s massive global audience of around $2.5 billion. Facebook will reportedly start testing the coin by the end of the year and have a formal launch in 2020.

Featured image: Chinnapong /Shutterstock.com

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