Just when you thought the noise around bitcoin has started dying down, reports are that the biggest social network in the world is planning to launch its own cryptocurrency. According to reports, Facebook will make an announcement about its cryptocurrency, dubbed Project Libra internally, later in June.
Expected to be called GlobalCoin, there is speculation that the cryptocurrency might “pay interest to users of its cryptocurrency, which will eventually lead to populist calls to repeal subsidies at the heart of the US banking system”.
According to Forbes blockchain and crypto contributor Caitlin Long, Facebook is planning to market the cryptocurrency extensively in developing countries with volatile currencies, hoping to provide more security to citizens in countries where the government-backed currency is under strain.
In order to counter antitrust allegations, Facebook has handed governance control of the cryptocurrency over to an independent foundation, recently formed in Switzerland. This could make them a significant player in global capital markets.
Experts also predict that the introduction of this new cryptocurrency might actually boost interest in bitcoin again. Catering to a global audience of billions, Facebook might make cryptocurrency more of a household name and widely used entity, ultimately benefiting existing and more established cryptocurrencies like bitcoin.
How would you use Facebook cryptocurrency?
Aligning with Facebook’s recent push towards e-commerce on the Facebook family of sites, including features on Instagram that allow users to buy directly from merchants on the app, the introduction of cryptocurrency tokens further smooths out the technicalities of using social networks for sales.
The cryptocurrency is expected to be available for use on all Facebook entities, including WhatsApp, Messenger and Instagram. There is also talk of introducing physical ATM-like terminals at a later stage.
Facebook is expected to make announcements about Project Libra on 18 June, with the project expected to be launched globally by next year.
Keep an eye on Agora Tec’s blog for the latest on this developing story.