Facebook is planning to launch its own cryptocurrency in early 2020, it will allow users to make digital payments in a handful of countries.
The currency is known as GlobalCoin, it would enable Facebook users to change dollars and many other international countries into digital coins which could be used to make payments or transfer money without needing a bank account.
Mark Zuckerberg, founder of Facebook, met the governor of the Bank of England last month to discuss the plans. Zuckerberg also discussed the proposal with US Treasury officials and money transfer firms to develop cheap, safe ways for people to send money.
The social media platform is hoping to damage other networks by breaking down financial barriers, competing with banks and reducing consumers costs.
Cryptocurrency is virtual currencies which can be used to pay for things in real life such as food, hotel rooms or even a house. Digital tokens are help in online wallets and can be sent to users anonymously.
Facebook has been long expected to make a change in financial services, having hired the former PayPal president, David Marcus, to run its messaging app in 2014.
“Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology,” a company spokesman said in a statement. “This new small team is exploring many different applications. We don’t have anything further to share.”
Facebook has been under criticism for handling the data of users in recent past and earlier this month the US Senate and Banking committee wrote a letter to Zuckerberg questioning how the currency will work, what consumer protection will be offered and how data will be secured. Facebook has discussed the process of identity checks and how to reduce money laundering risk with the US Treasury.
