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Facebook plans cryptocurrency launch in 2020

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Tech giant Facebook has ambitious plans to set up a digital payments system across different countries by 2020.

Facebook is planning to launch a cryptocurrency, described internally as ‘Globalcoin’, in 12 countries. The company is aiming to test the new digital currency by the end of this year and roll it out to users early next year, according to reports.

It is understood that the social media company, which owns Instagram and Whatsapp, has laid out its plans to Bank of England governor Mark Carney and sought advice from officials at the US Treasury.

The BBC reported that Facebook is already in talks with money transfer firms, including Western Union, to develop secure ways for people to send and receive money internationally.

How do cryptocurrencies work?

Cryptocurrencies provide consumers with digital tokens which are held in online wallets, which can be sent to other users and can be used to pay for certain items.

These virtual currencies run on blockchain technology, which comparises of a list of ‘blocks’ or records which is stored digitally.