Facebook plans to launch its cryptocurrency in 2020

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Facebook is in the process of finalizing plans to launch its crypto in 2020, reports the BBC. The social media giant will roll out the digital currency in around a dozen countries by the first quarter of next year, with the company planning to begin testing for the crypto, internally dubbed GlobalCoin, by the end of this year, according to the outlet.

Here's what it means: Facebook has tech and resources, but trust will be the currency that'll really determine the success of its crypto project.

Facebook's considerable resources have enabled it to make significant headway on its crypto project already. We reported last week that it registered a new fintech company, dubbed Libra Networks, in Switzerland as part of its efforts to move into financial services and crypto. The company has also sought advice from regulators in the US and the UK, with Mark Zuckerberg having already spoken to the head of the UK's central bank about the opportunities and risks involved in launching a crypto, according to the BBC. Facebook has also reportedly held talks with a number of financial services firms, including two crypto exchanges, in an effort to provide users of its own crypto with access to safe storage and enable them to convert the digital currency into other cryptos or fiat currencies, per the Financial Times.

But its recent privacy woes will be a major roadblock it needs to overcome. Across the past 18 months, Facebook has been embroiled in a number of scandals that have provoked the ire of its user base and regulators alike. Last year, for instance, the company became the center of a major scandal when it was revealed that 87 million users' data had been illegally obtained by research firm Cambridge Analytica. Since then, the firm's had to contend with a steady stream of similar data privacy issues and breaches. If Facebook is to make a success of its crypto and convince enough of its current user base to use it, the company needs to act fast to build trust and change the negative perceptions around it.

The bigger picture: Yet, if any firm can push through mass crypto adoption, it's Facebook; for incumbents, that's a big problem.

Facebook's huge user base offers it a significant leg up for its crypto push. Mass adoption of crypto remains a way off, with a constant flow of hacks and illegal activity continuing to deter consumers. However, with more than 2 billion users, per the FT, across its core platforms, Facebook has a huge ecosystem of users it can provide new value for using the nascent asset class. Its crypto can reduce friction for these users, enabling them to make purchases or make transfers to each other without having to leave the platform, for instance. This is particularly problematic for incumbent financial institutions (FIs), because the company stands to disintermediate them, or at the very least push price points down considerably and eat into their revenue. And the likes of WeChat in China have shown how successful these efforts can be, making Facebook's financial services push an alarming threat for FIs.

But for forward-looking FIs, there's also an opportunity to work with Facebook and stake a strong position in the space.Facebook's regulatory struggles don't bode well for its efforts to enter financial services, not least because of the substantial compliance burdens FIs have to content with. The challenge of navigating this regulatory terrain can provide fast-moving FIs in jurisdictions Facebook plans on offering its financial services products to with an opportunity to partner. In this way, the social media giant can focus on serving its consumers and lean on FIs to tap into their deep regulatory know-how and expertise. The recently announced partnership between Apple and Goldman Sachs to roll out credit cards is a prime example of how effective this route can be for both big tech firms and established FIs.

这是专门向Business Insider Intelligence Fintech Briefing订阅者提供的故事的摘录。 如果每天早上都能收到全文和其他见解，请点击此处。据英国广播公司报道，Facebook正在最终确定2020年加密计划的计划。据该网点称，这家社交媒体巨头将在明年第一季度之前在十几个国家推出数字货币，该公司计划在今年年底前开始测试加密，内部称为GlobalCoin。 这就是它的意思：Facebook拥有技术和资源，但信任将成为真正决定其加密项目成功的货币。 Facebook的大量资源使其能够在其加密方面取得重大进展项目已经。我们上周报道称，它在瑞士注册了一家名为Libra Networks的新金融科技公司，作为其融入金融服务和加密的努力的一部分。英国广播公司（BBC）表示，该公司还向美国和英国的监管机构寻求建议，马克扎克伯格已经与英国央行负责人讨论了启动加密的机会和风险。据报道，Facebook还与包括两个加密交换机在内的多家金融服务公司进行了会谈，旨在为其自己的加密用户提供安全存储，并使他们能够将数字货币转换为其他密码或法定货币。英国金融时报。但最近的隐私问题将成为它需要克服的主要障碍。在过去18个月中，Facebook卷入了一系列丑闻，这些丑闻引发了其用户群和监管机构的愤怒。例如，去年该公司成为重大丑闻的中心，据透露，研究公司Cambridge Analytica非法获得了8700万用户的数据。从那以后，该公司不得不面对源源不断的类似数据隐私问题和beaches。如果Facebook要使其加密成功并说服其足够的当前用户群使用它，公司需要快速行动以建立信任并改变其周围的负面看法。更大的图景：然而，如果任何公司都可以推动大规模加密采用，这是Facebook;对现任者而言，这是一个大问题。 Facebook庞大的用户群为其加密推送提供了重要的支持。密码的大规模采用仍然是一个方法，持续不断的黑客攻击和非法活动继续阻止消费者。然而，根据英国“金融时报”，其核心平台拥有超过20亿用户，Facebook拥有庞大的用户生态系统，可为使用新生资产类别提供新的价值。它的加密可以减少这些用户的摩擦，使他们能够在不必离开平台的情况下进行购买或相互转移。对于现有的金融机构（FI）而言，这尤其成问题，因为该公司将对其进行解体，或者至少将价格点大幅下调并蚕食其收入。而中国的微信也表明这些努力是多么成功，使得Facebook的金融服务对金融机构构成了惊人的威胁。但对于具有前瞻性的金融机构而言，还有机会与Facebook合作并获得强势。在该领域中的地位.Facebook的监管斗争对于其进入金融服务的努力并不是好兆头，尤其是因为金融机构必须满足的实质性合规负担。导航这一监管领域的挑战可以在司法管辖区内提供快速发展的金融机构Facebook计划向合作伙伴提供金融服务产品。通过这种方式，社交媒体巨头可以专注于为消费者提供服务，并依靠金融机构来利用其深厚的监管专业知识和专业知识。苹果和高盛之间最近宣布的推出信用卡合作伙伴关系是这条路线对这两条路线有效的一个很好的例子。h公司和成立的金融机构。