The plans of launching its own crypto currency by Facebook are on their final stages.

By the end of the first quarter of 2020, the company is targeting to set up a digital payments system in about a 12 countries. There are reports that by the end of the current year, testing of its crypto-currency is planned to be initiated by the social media giant.

Facebook’s crypto-currency has come to be internally called as GlobalCoin.

It is expected that Facebook would talk to Bank of England governor Mark Carney to explain in more details its plans sometime this summer. The opportunities and risks associated with the launch of a crypto-currency were discussed between Facebook CEO and founder Mark Zuckerberg and Carney during a last month meeting between the two. Suggestions on operational and regulatory aspects have also been sought by Facebook from US Treasury Department officials.

It has also been reported that the social media company is also negotiating with a number of companies in the money transfer industry – including Western Union, with the aim of offering cheaper and faster means of send and receive money for people who do not have access to a bank account.

The basic premise of the launching of the digital currency by Facebook is to offer people affordable and secure ways for transferring money irrespective of whether the senders or receivers have a bank account or not.

Breaking down the existing financial barriers, rivaling banks and reducing costs for customers would be the strategies that would be used by Facebook as it hopes to disrupt existing networks.

Reports about the plans of Facebook to launch create and launch its own digital currency – codenamed Project Libra, first emerged last December. In this endeavor, the social media company would be partnering with and working closely with banks and brokers who would be responsible for allowing users to exchange their dollars or other internationally accepted currencies into digital coins. In order to make its digital currency widely acceptable and useful for users, it has also been reported that Facebook is trying to strike deals with a number of online merchants and attempting to convince them to accept its crypto currency as a mode of payment but with low transaction fees.

However, this endeavor of Facebook could face some hurdles. In recent years, there has been severe criticism of Facebook over its policy and practice of handling personal data of its users. Analysts therefore say that regulators across the world are more likely to closely examine its crypto currency when it is launched.

Facebook had made earlier made an effort to launch its digital currency. Facebook Credits, a virtual form of currency which could be used by people for purchasing products such as in apps on the social networking site, was developed by it about a decade ago. But that did not gain traction even after being in service for two years and was ultimately closed down by Facebook.

(Adapted form BBC.com)