Facebook Digital Currency
Facebook has announced plans to launch a new digital currency by 2020 (facebook digital currency). Facebook wants to start experimenting with the digital currency, which is referred to by international currency workers, by the end of this year.
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| Facebook Digital Currency |
Last month, Zuckerberg met with Bank of England Governor Mark Carney to discuss the potential risks and risks of launching the digital currency, reported in the BBC News.
The BBC said Facebook had asked for advice on labor issues and the rules governing the currency release from the US Monetary Authority.
facebook digital currency
The company is also in talks with currency exchange companies as it looks for cheaper ways to convert currency to people who do not have bank accounts.
Zuckerberg said Facebook wanted to create a digital currency, providing cheap and secure means of payment, without the need for a bank account. The social networking site breaks down financial barriers, competes with banks, and reduces consumer costs.
The first report on this subject was issued last December.
Facebook has agreed with banks and intermediaries, which will allow currency traders to exchange between them and currencies. A small group of founders is expected to launch a Swiss-based association in the coming weeks, the BBC said, citing the report.
Subsequent reports indicate that Facebook is in talks with a number of currency traders in the virtual space, with the aim of accepting the new digital currency, for a small fee for conversion.
What is the digital currency “Bitcoin”?
The default currency is a normal currency, but it is used only on the Internet, without physical presence. It is used to pay for the cost of goods and services in the real world, such as restaurants, hotel accommodations, and even against buying a home.
The digital currency is saved in virtual portfolios and is traded via information networks that form cash agreements or transactions stored on electronic networks.
This information is stored in chronological order, visible to a group of users, and importantly, it is not managed by a central authority such as banks and governments.
facebook digital currency
The system is designed in a way that ensures the security and privacy of users.
What are the concerns for Facebook?
Facebook has been criticized in recent years for its handling of the privacy of user data, and officials are expected to monitor the launch of the digital currency and treat the site and its users closely.
The Senate Banking Committee wrote a letter to Zuckerberg asking him how the digital currency he plans to launch and what protection measures users would be able to do.
The BBC also said that Zuckerberg had also discussed with the US Treasury the identity check process and the way to reduce the risk of money laundering.
It is likely that Facebook and its partners want to prevent the currency’s sharp instability by linking it to a basket of known currencies, including the US dollar, the Japanese yen and the euro.
This is not the first time that Facebook has announced its intention to launch a virtual currency. It has previously disclosed “Facebook credit”, a currency that allows users to buy applications through the social networking site, but Facebook stopped the project two years later because of its lack of success.
The biggest challenge would be people’s trust in the social networking site if it was enough to start transferring their money into a digital currency through it.
Will FB COIN succeed for Facebook?
The biggest temptation for the digital currency, especially for large companies and banks, is the sophisticated technology it uses, which cuts back on users the time it takes to send money across borders.
The former governor of the Bank of England, Lord King, warned two decades ago that central banks would lose their importance if the use of the digital currency was similar to the use of the common currency these days.
One of the risks to digital currencies is that their value is highly volatile, which reduces their attractiveness to the average person.
facebook digital currency
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