Mark Zuckerberg’s belief that sending money to someone should be as easy as sending a photo motivated Facebook to create its own cryptocurrency.
The social media platform is polishing up the GlobalCoin currency which will be available in a dozen countries by 2020. In fact, Zuckerberg has already been in talks with Bank of England Governor Mark Carney and US Treasury officials.
He’s also holding talks with money transfer firms, including Western Union, on cheaper, faster, and safer ways for people to send and receive money.
In Facebook’s annual developer conference last month, Zuckerberg touched on the new
payment system which will be tied to the messaging platform WhatsApp.
“When I look out at all the different ways that people interact privately, I think payments is one of the areas where we have an opportunity to make it a lot easier, that’s among the most important things that we can do here.” – Mark Zuckerberg, Founder & CEO, Facebook, Inc.
How likely is GlobalCoin going to succeed?
Facebook may be the most widely used social media platform in the world, but it has a history of mishandling user data, which could likely discourage people from using the GlobalCoin.
The social media giant will also have to deal with differing cryptocurrency regulations in
countries where the GlobalCoin will be launched.
In light of Facebook’s plans, the US Senate Committee on Banking, Housing, and Urban Affairs wrote a letter to Zuckerberg asking him to answer the following questions:
● How will the new cryptocurrency work?
● What privacy and consumer protections will users get?
● What consumer financial information has Facebook received from a financial company
and how does the company safeguard it?
● Does Facebook sell any consumer information with any unaffiliated third parties?
● Does Facebook have any information on a user’s credit standing?
● How does Facebook ensure that it doesn’t use an individual’s financial information in
violation of the Fair Credit Reporting Act?
Considering the volatility of cryptocurrencies, Facebook is reportedly pegging the value of the GlobalCoin to a basket of established currencies, including the US dollar, euro, and Japanese yen.
Are you ready to send and receive payments with Facebook’s cryptocurrency? Share your thoughts with us in the comments below or join our Facebook Group.