Facebook is finalizing plans to launch into the booming cryptocurrency verticals, with its GlobalCoin which is set to make debut next week, amidst ongoing consultations with several financial institutions for support on Project Libra, its blockchain-based payments network.
Project Libra is reportedly backed by government currency, while Facebook will be employing actual financial firms to help with the launch of the project, which companies include Mastercard and Visa, along with several other web-based payment systems like PayPal, Stripe, and Booking.com.
The plan to develop a cryptocurrency has been on the burner for Facebook since December last year, and the company aimed to create the cryptocurrency for payments on all its platforms, which according to internal leaks is to be called Libra, and will be launching on June 18, with full rollout planned for 2020.
It will serve as a “stablecoin” - which means that it will be pegged to government-issued currencies - so as to limit the volatility associated with such cryptocurrency offerings like Bitcoin. As stability will be a key concern, Facebook is hoping to woo users in the more developed economies with alternatives to the volatile local currencies.
Facebook, however will need to overcome the obvious regulatory hurdles before it can be able to launch the crytocurrency, and also be required to address concerns such as money laundering and fraud before the full takeoff.