Facebook remains the largest social media platforms as it plans to launch its cryptocurrency in early 2020. The new coin will be named 'GlobalCoin,' and it will enable Facebook to end users to trade, store and also exchange the currency via all Facebook applications, including Messenger and Whatsapp.
The report by BBC also has it that Facebook plans to work with third parties, who are to act as its validator nodes and that these validator nodes will be charged up to $10 million to enjoy this privilege.
Facebook has, however, not released any additional information about how the third party organizations can qualify as a validator node or how they will be rewarded. Be that as it may, GlobalCoin already looks good to be the antithesis of the popular cryptocurrency, bitcoin in that anyone can also run their node with minimal resources.
The result of the above is that GlobalCoin from Facebook will not be a peer-to-peer cryptocurrency but will be more of a peer-to corporation-to-peer cryptocurrency. There are also indications that GlobalCoin will become the very first of its kind as a corporate-issued competitor to national currencies.
According to some online commentators, the unique state of GlobalCoin will most probably give bitcoin a unique advantage as a neutral alternative to money protocol that never gets transactions censored by design.
Furthermore, there are reports that Facebook will allow its employees to get paid via GlobalCoin, its new cryptocurrency.
In an attempt to give GlobalCoin a unique and commanding position in the cryptocurrency world, the CEO of Facebook, Mark Zuckerberg has reportedly reached out to Tyler and Cameron Winklevoss, who are his old-time rivals.
The twins are the acclaimed founders of the Gemini cryptocurrency exchange, which is well-known for being exceptionally regulated in the United States and can play a critical role in the cryptocurrency being planned for launch by Facebook, which is dollar-pegged. The cryptocurrency is expected to be kept under the purview of cryptocurrency regulators.
Also, Zuckerberg is building on this by having talks with US Commodity and Futures Trading Commission (CFTC) towards exploring the possibility of GlobalCoin fitting into the regulatory remit of the Commission. Additionally, Mark Zuckerberg has reached out to Mark Carney, who is the Governor of the Bank of England on this same issue.
Payment for Russia oil with GlobalCoin?
There is also a Russian angle to the development of the GlobalCoin worth mentioning. The CEO of Rosneft, Russia's largest oil company, Igor Sechin, said that his company would not mind accepting the cryptocurrency floated by Facebook for its oil payments.
Sechin reportedly said,
“A separate phenomenon that needs to be noted is a growing importance and the beginning of the technological leaders, most of whom have American roots – Google, Apple, Amazon, and Facebook – penetrating the oil and gas industry. It may be that soon we will all be paying for the barrels of oil cryptocurrency Facebook – Global coin, which at least is evidence that some of those present here are engaged in the wrong business."