Saturday, June 8, 2019

Facebook's GlobalCoin: What Can We Expect?

Facebook's GlobalCoin: What Can We Expect?

Facebook is allegedly working on a cryptocurrency called GlobalCoin and could be eyeing a Q3 release date. Although sources from Facebook have declined to comment on developments, several details about this intriguing project have been leaked over the past year. What can we expect from Facebook rumored cryptocurrency?

facebook's cryptocurrency will be called 'GlobalCoin'

 According to sources familiar with the project, Facebook's new cryptocurrency will be called GlobalCoin and will have a range of applications. This new digital token may be used to transfer value between Facebook users or as a reward system from advertisers to users who engage with certain content.

 Facebook has acquired the trademark 'Libra'

The coin is being developed by Facebook's internal blockchain project, called 'Project Libra,' and will be a 'stablecoin' that is pegged to the U.S. dollar. We know that Facebook has registered the trademark Libra, and some details have emerged about the composition of this team.

Facebook has hired PayPal staff to work on Libra

The rumor mill went into overdrive last year when former PayPal president David Marcus was hired to head up Facebook's dedicated blockchain team. Roughly 20 percent of the fifty-strong team are believed to be past PayPal employees, leading to comparisons with the 'PayPal Mafia' in the early 2000s, a group of executives including Peter Thiel, Elon Musk and Reid Hoffman who went on to disrupt the payments industry. The latest reports from the Wall Street Journal indicate that Facebook is planning to conquer the online payments market using GlobalCoin.

 Facebook's cryptocurrency will likely be a stablecoin

According to sources, Facebook is currently in talks with MasterCard and Visa for its Libra project and is planning to launch GlobalCoin as a stablecoin. Stablecoins are digital assets that are linked to government-backed currencies. The most well-known stablecoin is Tether, which is allegedly backed 1:1 by U.S. dollars. The New York Times has reported that Facebook is "hoping to succeed where Bitcoin failed," by creating a cryptocurrency that can be used by potentially millions of users.

 A timeline of GlobalCoin developments

 Given the secrecy surrounding Facebook's plans for its new cryptocurrency, here's a brief overview of everything we know so far.

 January 2018: On January 4, 2018, Facebook CEO and founder Mark Zuckerberg published a Facebook post outlining his personal goals for 2018. He suggested that cryptocurrency and encryption could help the platform address the issue of people misusing Facebook: "I'm interested to go deeper and study the positive and negative aspects of these technologies, and how to best use them in our services," he wrote.

 May 2018: A report from Recode stated that Facebook was launching a dedicated blockchain team to explore blockchain technology. This initiative is being led by former PayPal president David Marcus, the former vice president for Messenger.

 June 2018: Facebook appointed Evan Cheng as its first 'director of engineering, blockchain'. 

December 2018: Both Bloomberg and The New York Times reported that Facebook was developing a stablecoin for WhatsApp users, prompting speculation that a 'WhatsApp Coin' could be in the works.

 February 2019: On February 20, 2019, Zuckerberg spoke with Jonathan Zittrain about the possibility of using blockchain technology to store Facebook logins. During the exchange, Zuckerberg said:  

"I'm thinking about going back to decentralized or Blockchain authentication. Although I haven't figured out a way to make this work out, but this is around authentication and basically granting access to your information and to different services."

 Also in February, The New York Times reported that Facebook was in talks with cryptocurrency exchanges about listing GlobalCoin. This report indicated that Facebook could be targeting a Q2 release date.

 April 2019: The Wall Street Journal reported that Facebook's cryptocurrency will be part of an initiative known as 'Project Libra'. This project has been underway for over a year and Facebook is in discussion with dozens of online merchants and financial firms including MasterCard, Visa, and First Data.

 Facebook is currently in talks with several e-commerce firms in hopes that they will accept the GlobalCoin and offer funding for the project.

 According to the WSJ report, Facebook is planning to roll out a virtual checkout option that will enable users to shop at third-party sites using GlobalCoin.

 Closing thoughts GlobalCoin's purpose is being kept under wraps, but multiple news sources have published details about its release date, purpose and more. With a slew of conflicting articles, it remains to be seen whether GlobalCoin will be a hit or a flop when it is released later this year or next.