It has been announced that the latest venture of the social media giant is to move into finance, so what are Facebook’s Crypto Currency plans?
The latest announcement about Facebook’s Crypto Currency plans were made available today, but exactly how this will work is still not exactly clear.
It has been reported that they intend to launch GlobalCoin sometime late in 2020 a new digital currency in around 10 different countries.
Whilst not confirmed, there has allegedly been some communication with the financial authorities in both the UK and USA regarding the operational and regulatory issues.
The intention of launching a new crypto currency is supposed to help support those looking for more affordable and safer ways of transacting payments, however there could yet still be problems.
If Facebook’s Crypto Currency plans go ahead, what could the problems be?
The biggest problem with any crypto currency is not necessarily trading or spending with others who use the same ‘currency’, but when you need to convert that back to a legally trading currency.
The biggest concern will almost certainly be the main banks allowing deposits or credits from crypto currency related transactions.
In recent years there has been a wide view that many illegal activities has been funded using a crypto currency, so make it very appealing to money launderers.
As such, the mainstream banks both in the UK and abroad will be very cautious when it comes to allowing transactions or deposits from such sources.
So whilst Facebook’s Crypto Currency plans may attempt to help lower transaction charges, if the banks will not allow this, then it may struggle to become widely accepted.
Anyone involved will know just how difficult it can be when dealing with bank transactions related to crypto currencies and the issues that come from it.
So whilst Facebook is powerhouse of a business, doubts will still remain if the big banks will ultimately decide whether to accept or reject yet another crypto currency.
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