We’ve been talking about ‘Facebook Coin’ for the better part of six months on CryptoDaily but it’s all been in speculation. Now we have confirmation that Facebook is indeed creating its very own cryptocurrency.
It’s been floating around for a while now that Facebook has been creating a cryptocurrency in the secret Libra’ project but the BBC have just reported that the giant is in fact on track to start testing its Bitcoin rival, which is to be known as GlobalCoin, before the end of the year.
Libra started about 12 months ago when Facebook was looking to find a way to transfer money between users of its WhatsApp service. One thing led to another and Libra grew on a massive scale. It is looking to create a digital payments system that will ensure cheap, secure and fast money transfers for users.
As reported by CCN:
“The Facebook CEO had said earlier this year that he is planning to integrate Messenger, WhatsApp, and Instagram to enable cross-platform messaging. In hindsight, it looks like Facebook was already preparing for the launch of the so-called GlobalCoin, as the cross-platform messaging feature would allow users across all three services to send digital currency to each other.”
Zuckerberg is probably hoping that he can have an impact on Bitcoin specifically thanks to a massive user base that Facebook has but one that is also driven by applications like WhatsApp and Instagram.
On top of this, Facebook has allegedly been confronting regulators in the United States and the UK in preparation for the launch of the new cryptocurrency.
The social giant has been speaking to the Bank of England as well as the US treasury to gain insights on the risks involved with cryptocurrency.
“Unlike bitcoin, Facebook’s GlobalCoin will be under the control of the social media company. The biggest advantage of bitcoin is that it is a decentralized digital currency that isn’t controlled by anyone. There is no central authority bitcoin holders report to, but that will probably not be the case with GlobalCoin as Facebook will have access to the identities of all those who hold its digital currency.”
So anonymity doesn't seem an option with GlobalCoin.