It is no longer a secret that social media giant, Facebook has a vested interest in cryptocurrencies. Rumours of Facebook’s plan to create its own coin have been going around for months. While Facebook is yet to declare its plans openly, reports from the company indicate plans to release a Global coin and the speculated release date for the White paper is June 18.
Facebook has been nursing plans to delve into the cryptosphere for a while. However, while the company would have loved to stay mute on its plans, analysis of the steps it has taken since 2017 point to its plans to have a share of the cryptospace.
Where it all Began
The first indication of Facebook’s interest in cryptocurrency was in 2017. David Marcus, the vice president of messaging products at Facebook at that time joined Coinbase board of directors in 2017. The clue increased when in May 2018, Marcus revealed that he was leaving the Coinbase board. Marcus who had been a president at PayPal had to step down from Coinbase as he had been reassigned to a Blockchain task on Facebook and wanted to avoid conflicting interest.
In December 2018, Bloomberg reported that Facebook intended to build a stablecoin. Stablecoins are cryptocurrencies that are pegged to actual fiat currencies such as the USD and they are similar to regular cryptocurrencies with the exception of the price volatility. According to the report, Facebook’s Coin will focus on the remittance market in India and enable users to send money at low costs over WhatsApp.
On the other hand, Facebook continued to drop crumbs of clues of its interest in cryptocurrency. In February, Facebook acquired Chainspace in claims of expanding its crypto knowledge. The company also started hiring people with blockchain related talents.
GlobalCoin Funding revealed
Also, the company is equally trying to raise funds for its project. However, details about the fundraising still remain sketchy. In May, the Wall Street Journal brought more claims that indicated that the company is looking beyond Venture Capitalist funding as the company had been having talks with Western Union and Visa.
Facebook is looking towards creating a $1billion capital basket of different fiat currencies to help serve as collateral for the stable coin. This is why the company is speaking with financial institutions. Also, the company has revealed that running a node might cost as high as $10 million as this might solve the issue of centralization.
Project Libra unveiled
Likewise in May, Reuters found out that Facebook had registered a company called Libra Networks in Switzerland and Facebook Global Holdings was registered as its stakeholder. More speculations have it that Project Libra as the coin has been dubbed will be rolled out in 2020. However, more speculations claim that it might come sooner than that as Facebook had included ‘Send and Receive Money’ on its social media app.
In addition to the speculations, Facebook’s CEO Mark Zuckerberg announced at the company’s annual F8 event for developers in April that the coin will be built in such a way that sending money will be as easy as sending someone a photo. Also, Facebook’s Laura McCracken, the head of financial services and payments for Northern Europe has revealed that the company would be publishing a white paper for its token dubbed GlobalCoin by June 18.
Facebook is still not ready to give out any details of its cryptocurrency. However, we know that this crypto move will enable the company to offer a wider range of financial services to people on its various platforms which includes Facebook, Instagram and WhatsApp.
When do you think Facebook’s GlobalCoin will be launched? Share your thoughts with us in the comment section below.