Facebook is ready to announce the launch of its own cryptocurrency this month. According to a report by The Information, the Menlo Park-based company's foray into the digital assets world, backed by some sort of stablecoin-mix, will be introduced in June. Additionally, CNBC reported yesterday that 100 of Facebook's employees are known to be working on the project.
Upon converting fiat to Facebook's coin, users will purportedly be able to send funds to other users irrespective of the country of residence, ultimately marking Facebook's entrance into the digital payment arena. These nodes will likely be the hands of a few financial institutions, tech conglomerates, and other corporate giants, not much unlike our current banking system (with a little more Silicon Valley involvement, of course).
One further intriguing tidbit about GlobalCoin is that apparently Facebook is reaching out to third-party companies to run the "nodes" of this network.More news: In Wayanad, Rahul Gandhi launches first attack on new Modi government
In order to make its crypto project more transparent, the company will allow outside partners from its foundation to run a node for a hefty $10 mln fee. The social media giant's ad model has been criticized by its users and by lawmakers over the way it uses detailed user information.
"The digital token is created to function as a borderless currency, without transaction fees, and will be aggressively marketed in developing nations where government-backed currencies are more volatile".
The Information's report also suggests that Facebook may unveil its cryptocurrency and white paper later this month. However Facebook COO Sheryl Sandberg and CFO David Wehner are skeptical about the initiative according to reports. India's data protection norms, since then, have barred global internet and data services from storing data of Indian users outside India.More news: Star Wars Jedi: Fallen Order Box Art Released
For the a year ago, rumors of Facebook working on its own cryptocurrency have been making rounds in the market.
The reason behind the development of a native cryptocurrency can be directed to the fact that it will help Facebook in automating its already-centralized processes.More news: James to join Manchester United in reported €20M move