Facebook will launch its own Bitcoin-style currency by 2020, according to BBC reports released last Friday. Called internally GlobalCoin, the social network's e-money goes into testing this year. According to the publication, virtual money will be used within Facebook apps and services (such as Instagram and WhatsApp) to transfer money. This would guarantee users a fast and secure method of money movement without the need for a bank account.
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GlobalCoin, which previous speculation would call Project Libra, will be converted to the dollar and other currencies and will be launched in the first quarter of 2020 in 19 countries.
GlobalCoin could be exchanged for real money and could be used without bank account Photo: Divulgao / Facebook
According to information released by the BBC, Facebook intends to dispute space with conventional financial institutions and banks. Using virtual currency, the network could offer a more affordable and convenient means of payment and transfer of money, eliminating the need for traditional bank accounts. In this logic, however, banks would still be needed to perform GlobalCoin's real money conversion operations, or vice versa.
Although Facebook has not officially taken a position on the information, the studies seem advanced. According to the BBC, Mark Zuckerberg held meetings with the Bank of England, which has a regulatory nature and functions similarly to the Central Bank of Brazil, in addition to the United States Treasury, which is similar to those of the Ministry of Economy for the Brazil.
These talks would aim to discuss regulatory issues that would have to be addressed by the initiative. The British publication also reports that Facebook is in negotiations with Western Union, which offers money transfer services that could be integrated with GlobalCoin.
The social network was intended to harness the value of GlobalCoin by saying. Such a measure would be a way to prevent GlobalCoin from having the same volatility as other cryptocurrencies, which suffer large variations in the quotation according to market moods. Linked to the dollar, GlobalCoin would have a more stable value and could end up becoming a safer option for payments over the Internet.