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Facebook’s bitcoin-inspired cryptocurrency—GlobalCoin to launch in 2020

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Facebook, the social media giant that owns WhatsApp and Instagram, is finalizing its plans to launch its own cryptocurrency next year. According to BBC, “GlobalCoin” will roll out in 2020, with tests starting by the end of this year.

Facebook wants to target the unbanked with GlobalCoin

After months of speculation about when Facebook’s rumored cryptocurrency will launch, newest reports suggest that it might be sooner than expected. Dubbed the “Project Libra”, Facebook’s plans for a digital currency network were first reported last year.

According to a May 24th report from BBC, Facebook’s Bitcoin-inspired cryptocurrency, GlobalCoin, is set to be rolled out for testing by the end of 2019. The company’s digital payment system should be available in about a dozen countries by the first quarter of 2020.

GlobalCoin will reportedly be pegged to a basket of international fiat currencies, including the US dollar, the Japanese yen, and the euro. The move is supposed to eliminate the volatility associated with cryptocurrencies, which should bring them closer to more people.

Related: Facebook allegedly raising as much as $1 billion for its cryptocurrency stablecoin

More detailed plans about GlobalCoin will be revealed this summer, BBC said, adding that the company’s founder, Mark Zuckerberg, has already spoken to the Bank of England, Western Union, and the US Treasury Department.

Last month, Zuckerberg met with Mark Carney, the governor of Bank of England, with whom he discussed the opportunities and risks involved in launching a cryptocurrency. Talks with money transfer companies such as Western Union could help Facebook find cheaper and faster ways for people without a bank account to send and receive money.

The US Treasury has also reportedly advised Facebook on how to deal with operational and regulatory issues regarding cryptocurrencies, including how to conduct the process of identity checks.

Nobody seems happy about Facebook’s cryptocurrency

However, Facebook’s ambitious plans haven’t been well received. Earlier in May, the US Senate and Banking committee wrote an open letter to Facebook and Zuckerberg. In the letter, the committee questioned how Facebook’s cryptocurrency would work and how the company will protect consumer data.

Blockchain expert David Gerard told BBC that launching GlobalCoin would enable Facebook to gain access to spending data that could be more valuable than the revenue from the cryptocurrency itself.

Nonetheless, he noted that there was no need to create a separate cryptocurrency in order to harvest that data. Instead, he said that Facebook could have created its own payment platform similar to that of PayPal, which would allow users to transfer both fiat and cryptocurrencies.

Back in February, Alex Stamos, the former chief security officer at Facebook, said that Facebook would be faced with extraordinary challenges when creating a cryptocurrency, which could spell disaster for the company.

“I can’t think of a tech project with a more important privacy/safety balancing act than this one,” he tweeted.

If Facebook’s GlobalCoin was to be a private stablecoin, its ties to an encrypted messaging service would make it a hotspot for money laundering.

However, if GlobalCoin doesn’t implement advanced privacy features, having all that data in the hands of Facebook could be an unprecedented global privacy risk.

We are yet to see how far the use of GlobalCoin spreads after its launch, as the service will reportedly target the unbanked across the world, especially in India.

Filed Under: Adoption, Stablecoins

Priyeshu is a software engineer who is passionate about machine learning and blockchain technology. He holds an engineering degree in Computer Science Engineering and is a passionate economist. He built his first digital marketing startup when he was a teenager, and worked with multiple Fortune 500 companies along with smaller firms. When he is not solving the transportation problems at his company, he can be found writing about the blockchain or roller skating with his friends.

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Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

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NYSE files a trademark application for trading NFTs

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The world’s largest stock exchange may be planning to bring business into the Metaverse.

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Traders say $4,000 Ethereum back on the cards ‘if’ this bullish chart pattern plays out

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Global tensions that could trigger a correction in markets abound, but traders say ETH’s current setup could result in a swift return to the $4,000 level.

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CryptoPunks community reacts to the ongoing copyright battle between V1 and V2

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Although the collection is no longer deemed authentic by Larva Labs, its creators alleged sold 210 ETH worth of CryptoPunks V1 when the wrapped versions first gained traction.

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Binance.US is under investigation from SEC over trading affiliates: Report

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Binance CEO Changpeng Zhao allegedly has connections to two market makers buying and selling crypto on Binance.US.

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Boost Insurance unveils product covering against crypto theft from qualified custodians

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Boost Insurance, an insurance infrastructure-as-a-service platform, alongside go-to-market partner, Breach Insurance, a company that provides insurance technology and regulated insurance products for the cryptocurrency market, today announced the launch of Crypto Shield, an insurance product for cryptocurrency available to retail wallet holders.

Crypto Shield covers the theft of cryptocurrency while in the custody of a qualified custodian.

The Crypto Shield product allows individuals to purchase protection for their crypto wallets held by select custodians. In the case that the custodian is breached or suffers a social engineering attack resulting in lost assets, individuals insured under Crypto Shield can be reimbursed for the value of their policy.

Boost + Breach

While there is some commercial insurance available to cryptocurrency institutions, Breach envisioned Crypto Shield as a solution to the protection gap that currently exists for individuals holding crypto, securing a partnership with Boost to assist in bringing the Crypto Shield product to life.

Boost’s insurance infrastructure-as-a-service packages the necessary operational, technological, compliance, and capital requirements for new insurance programs into a white-label solution, enabling insurtechs like Breach to swiftly launch new lines of business.

“Boost’s deep expertise and insurance infrastructure-as-a-service platform, and Relm’s industry-leading crypto reinsurance capabilities, have positioned Breach to bring a highly complex insurance product to the market in a beautifully delivered customer experience.”
– Eyhab Aejaz, Co-Founder & CEO at Breach

To deliver that product in a seamless experience, Boost and Breach’s platforms connect via API, allowing Boost’s policy administration system to deliver back-end management for the Crypto Shield product. Breach’s customers are then able to purchase and manage every part of their policy and claims process, all from within Breach’s proprietary crypto insurance platform.

“With Boost’s infrastructure-as-a-service platform, companies like Breach can launch and deliver innovative new insurance offerings, at a fraction of the time and cost required to build a full-stack insurance program from scratch.”
– Alex Maffeo, CEO & Founder of Boost

In addition to powering the new product, Boost and Breach partnered to source and secure the necessary reinsurance backing from industry expert Relm Insurance Ltd. (Relm), underwritten by Trisura Specialty Insurance Company. Operating out of Bermuda, Relm is a capacity provider to the crypto sector with a track record of insuring companies across the ecosystem. Relm has recently been awarded an ‘A Exceptional’ Financial Stability Rating (FSR) by Demotech.

“Relm’s partnership with Boost and Breach to reinsure the US’s first cryptocurrency insurance product for retail wallet holders is a milestone in supporting the development of crypto and blockchain technologies.”
– Joe Ziolkowski, CEO at Relm

The post Boost Insurance unveils product covering against crypto theft from qualified custodians appeared first on CryptoNinjas.

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