After months of speculations over the launch of Facebook's own cryptocurrency reportedly dubbed GlobalCoin, the social networking giant will finally roll it out later this month.
After months of speculations over the launch of Facebook’s own cryptocurrency reportedly dubbed GlobalCoin, the social networking giant will finally roll it out later this month and would offer it as salaries to employees working on it, CNBC reported citing technology news portal The Information. Not just that, Facebook is also looking to set-up crypto dispensing ATMs similar to cash dispensing ATMs.
All that while going through multiple data leak scandals since last year that has hit Facebook. But the company and Mark Zuckerberg, in particular, is betting big on cryptocurrency. But what would it take for users to trust GlobalCoin for which “Facebook had appointed its head of Messenger David Marcus last year to lead its blockchain division and has been working different financial and technology firms to seek support for its cryptocurrency,” Forbes reported.
“To trust GlobalCoin, Facebook will require some sort of independent organisation that controls its cryptocurrency similar to a central bank of a country that controls its physical currency,” Ashish Agarwal, Founder at Bengaluru-based blockchain platform startup, Cubereum, told Financial Express Online. Agarwal was earlier an investment banker at Goldman Sachs in the US and was involved in investment and research on blockchain in the firm.
Facebook is indeed setting up a new foundation to ensure that GlobalCoin remains decentralised and to soothe financial regulations, according to Forbes, that would validate transactions.
“This would ensure that there is no high volatility in the price of GlobalCoin and remains stable as cryptocurrencies are usually too volatile. The foundation has to be created in a way wherein Facebook does not have direct ownership of the cryptocurrency. One possible way to ensure that is Mark Zuckerberg only remains an observing director and the foundation doesn’t report to the Facebook board nor take any revenue from it,” said Agarwal.
Facebook users would be able to pay for goods and services via GlobalCoin “if it has a stable value and is pegged to a currency/currencies that means its value will remain stable,” added Agarwal. GlobalCoin will reportedly be pegged to a basket of currencies, including the US dollar.