Facebook Has Signed up More Than a Dozen Companies to Back a New Cryptocurrency-Global Coin

Facebook Has Signed up More Than a Dozen Companies to Back a New Cryptocurrency-Global Coin

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  • Facebook hopes to start testing its own cryptocurrency, GlobalCoin, by the end of this year. It is reported that Facebook will release a white paper on June 18, and it is expected that in the first quarter of next year, the company will establish a digital payment system in more than a dozen countries.
  • This is very valuable for investors, but it is not very attractive for speculators. Last year, Facebook’s business model was criticized by consumers, politicians and advertisers. In recent years, Facebook has been criticized for handling user personal data, and regulators may closely review the release. Despite this, Facebook’s revenue is still growing, and its share price has risen by about 30% from last year. Currently, Facebook’s stock price is $177.47, with a market value of $506.586 billion. In the first quarter of 2019, revenue was $15.1 billion, a 26% increase from the previous year.
  • Facebook started to lay out payment areas ten years ago, and in 2010 created a virtual currency “Facebook credits” (credit coins), each of which was worth about 10 cents, which had a negative impact at the time because people questioned profitability.
  • Perhaps the biggest test of Facebook’s re-entry in the payment field is whether people will trust the social networking giant and be willing to convert cash into digital currency.
  • In the short term, the GlobalCoin project will likely become one of the more important events in the history of cryptocurrency. After all, about 30 million people currently hold cryptocurrencies, compared with 2.7 billion Facebook users.

The Wall Street Journal reported Thursday that the social media giant has signed on more than a dozen backers for its GlobalCoin cryptocurrency,including Visa, Mastercard, PayPal and Uber. Each of the new backers will invest roughly $10 million in the project as part of a governing consortium for the cryptocurrency.

Facebook began recruiting backers last month and sought up to $1 billion in funding to help launch the cryptocurrency project. According to people familiar with the matter, Facebook’s negotiations with a number of partners are underway, and the final membership of the cryptocurrency management consortium may change.

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