Facebook has just announced that it will unveil its “GlobalCoin” cryptocurrency by next year. Facebook essentially wants to become its own global marketplace, making it easy for users to make safe and secure payments on its various platforms, including Facebook Messenger, WhatsApp, and Instagram (all owned by Facebook). Instagram is the most critical out of these as it’s quickly rising to the most popular social media network.
Another reason behind GlobalCoin is to make life easier for those who live in foreign countries who send money home to their families and friends; sometimes the fee to do this is a quarter of the amount they need to send home. With GlobalCoin, that transaction fee would become obsolete, making it easier and less expensive to transfer money for those that already work so hard to acquire it in the first place.
Facebook’s biggest competition when it comes to sending cryptocurrency is an app made in China called WeChat, and it’s used by over 900 million Chinese people daily. Founded in 2011, it processes about $10 trillion in payments each year. According to Ted Livingston, writer for Medium and expert in messaging and crypto, WeChat makes it compelling for people to bring their money into WeChat, makes it easy for them to move their money around, and continues to create reasons for them to want to keep their money in the app. Facebook wants to do something similar but in a much larger way. Livingston believes that with GlobalCoin, Facebook looks to replace the U.S. dollar as our most widely used form of currency and replace it with this new cryptocurrency.
There’s still much to be done, including releasing GlobalCoin, but we can expect that to happen in the early part of 2020.