Social media giant Facebook will reportedly announce its cryptocurrency project this month, allowing employees to take part of their salary in the coin, CNBC reports on June 5.
Citing another report by The Information, CNBC states that “Facebook furthermore plans to cede control of the cryptocurrency to outside parties in order to ensure that the digital asset will not be completely centralized”.
Third-party organizations will purportedly pay as much as $10 million dollars for the opportunity to act as a node — in other words, to validate transactions — on the network for Facebook’s native token.
As Bitcoin went through a bear market through 2018 and early 2019, it increased interest from both individual investors as well as from the social media giants like Facebook. This saw Facebook quietly entering the cryptocurrency and blockchain space with what was unofficially named at the time it was first rumoured — “Fbcoin“.
According to sources within the company, the FBCoin was supposed to be created and used as a crypto asset, designed for its social media platform and with the clear intention of bringing this technology to billions of users.
But the latest leaked information shows that the cryptocurrency name will be GlobalCoin — which will purportedly be integrated as a payment tool on WhatsApp, Messenger and Instagram — and will also be accessible through physical ATM-like machines, says The Information.
GlobalCoin is a stablecoin type of cryptocurrency, that is a cryptocurrency tied to the value of a traditional asset, like the US dollar. But Facebook is looking to expand its own coin even beyond Facebook, and have other e-commerce companies accept it. Furthermore, Facebook would turn its crypto offering into a digital identity of sorts, which would enable users to pay with Facebook coin on third party sites, similar to how you can now use Facebook to log into other sites. With a user base of 2.32 billion monthly active users, Facebook certainly has the leverage to make its offering attractive to online retailers.
Facebook’s own cryptocurrency has been the subject of much speculation over the past several months, as the company has revealed little about the project. Earlier this week, the Financial Times reported that the United States Commodity Futures Trading Commission (CFTC) is in talks with Facebook about its upcoming GlobalCoin.
In May, Facebook reportedly acquired the “Libra” trademark for the secretive project. Sources familiar with the matter claimed that Facebook was recruiting financial firms to develop the coin and that the project codename is Libra.
Later that month, Facebook also registered a new financial tech firm, Libra Networks LLC, with the Geneva Commercial Register in Switzerland.