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Facebook to Launch its Cryptocurrency Next Year: Report

According to Zuckerberg, Blockchain could give users more powers when granting data access to third-party apps

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A television photographer shoots the sign outside of Facebook headquarters in Menlo Park, Calif. VOA

Facebook, which owns WhatsApp and Instagram, is gearing up to launch its own cryptocurrency next year, the BBC reported on Friday.

Called “GlobalCoin,” the cryptocurrency would work with a new digital payments system in about a dozen countries starting in the first quarter of 2020.

Facebook has been in contact with US and British financial regulators to launch it.

According to the BBC, Facebook is in touch with “Bank of England governor Mark Carney and officials at the US Treasury”.

With over two billion users across its platforms, Facebook could emulate WeChat in China which allows its users to chat, shop and play games without leaving its platform.

The Facebook cryptocurrency would need to overcome numerous technical and regulatory hurdles before it can be launched.

According to media reports, the Facebook currency could be designed to be a “stablecoin” with a value pegged to US currency in an attempt to minimize volatility.

A report last week said Facebook has reportedly set up a company called Libra Networks in Switzerland that is developing payments and Blockchain systems for the social networking giant.

virtual currencies, bitcoin, investors
Bitcoin is a cryptocurrency and worldwide payment system. Wikimedia Commons

According to a report in CNET quoting Swiss publication Handelszeitung, the Facebook cyrptocurrency would be tied to the US dollar and could, therefore, remain stable unlike Bitcoin which has crashed.

“Facebook set up Libra Networks in Geneva several weeks ago. Libra is the social network’s internal project name for the digital currency,” the report said.

The Swiss company would focus on developing the software and hardware for currency-related functions like payments, Blockchain, analytics, big data and identity management.

Facebook declined to comment on the new report.

Also Read- Microsoft Interns Make English Learning App

According to a report in The Wall Street Journal earlier this month, the social media giant is “recruiting dozens of financial firms and online merchants” towards its cryptocurrency-based system that would use a digital coin similar to Bitcoin.

The New York Times reported in February that Facebook had a team of 50 people working on its virtual currency project.

In a public interview with Harvard Law professor Jonathan Zittrain in February, Facebook CEO Mark Zuckerberg said he is “potentially interested” in putting the Facebook login on the Blockchain technology.

According to Zuckerberg, Blockchain could give users more powers when granting data access to third-party apps. (IANS)

Next Story

Facebook Loses its Place in Glassdoor’s ‘Best Places to Work’ List

The Top-100 list by Glassdoor is for large organisations or those with at least 1,000 employees. It bases its rankings on eight factors, including work/life balance, compensation and benefits and senior management, among others

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Social Media, Facebook, Authenticity, Posts
The social media application, Facebook is displayed on Apple's App Store, July 30, 2019. VOA

Mired in several controversies amid break-up calls from the US lawmakers, Facebook has once again slipped off Glassdoor’s “Best Places to Work” list for a second year in a row.

Facebook dropped to 23rd best place to work, falling 16 spots from last year’s position, and its award score fell from a 4.5 to 4.4 out of a perfect 5, according to the annual listing by the leading job website.

The top three spots are occupied by leading growth platform HubSpot, management consultancy firm Bain & Company and market leader in electronic signatures DocuSign, respectively.

Among the tech companies, Google is at 11th spot, LinkedIn at 12th, Microsoft at 21st, Salesforce at 34th, VMware at 36th, Adobe at 39th, Cisco at 77th, Accenture at 83th and Apple at 84th (the Cupertino-based iPhone maker slipped 13 spots from the last year’s list).

Amazon once again failed to enter the list of 100.

For Facebook, 2019 has been bad on the diplomatic front. Several US Senators have called for breaking up the social network amid repeated data breaches and privacy violations on the platform.

Facebook
Facebook has failed to comply with the subpoenas for more information related to the ongoing privacy investigation into its alleged privacy violations and Cambridge Analytica, the media has reported. Pixabay

Democratic presidential candidate Senator Kamala Harris has stressed that authorities should take a serious look at breaking up Facebook as the social network platform is a “utility that has gone unregulated”.

Another Democratic 2020 candidate Senator Elizabeth Warren has also stressed upon the possibility of breaking up Facebook.

Facebook CEO Mark Zuckerberg, however, rejected these calls, saying the size of the social media giant was actually a benefit to its users and the security of the democratic process.

Zuckerberg has promised his employees to “fight and win” if Democratic presidential hopeful Warren wins the 2020 election and moves forward with her stated plan to break up the big US tech firms.

Also Read: Here’s What India’s Privacy Bill Requires from Social Media Firms

The company in July agreed to pay record-breaking $5 billion to the Federal Trade Commission (FTC) as fine for users’ privacy violations in the Cambridge Analytica data scandal involving millions of users.

The US FTC is also investigating Facebook for potential monopolistic practices.

The Top-100 list by Glassdoor is for large organisations or those with at least 1,000 employees. It bases its rankings on eight factors, including work/life balance, compensation and benefits and senior management, among others. (IANS)