In case you haven’t heard yet, Facebook is finalizing plans to launch its own crypto-currency in 2020, which is currently being referred to as “GlobalCoin” by the company’s internal staff.
Although cryptocurrencies have been becoming a more mainstream financial assets in the past two years, never before in the history of business has a major institution prepared and launched its own retail cryptocurrency (as JPMorgan’s (NYSE:JPM) cryptocurrency is only for institutional use). That is, until now.
Basically, the social media giant reportedly wants to create a digital currency that provides its 2.4 billion monthly users with an affordable and secure way of making payments, regardless of whether they have a bank account or not.
Facebook recently communicated publicly about it’s intentions to disrupt existing networks by breaking down financial barriers, competing with banks and reducing consumer costs.
In fact, recent reports by major national news organizations show that Facebook has already sought advice on operational and regulatory issues from officials at the US Treasury and representatives of some of the biggest banks in the world.
The company is also in talks with money transfer firms including Western Union as it looks for cheaper and faster ways for people without a bank account to send and receive money.
So, this seems to be close to a done deal at the moment. Facebook is officially building it’s own global digital currency and is expected to launch the coin in about a dozen countries by the end of this year.
So, how does this affect your marketing efforts on the major social media channels? One thing we do know is that giving Facebook the ability to track the payment behaviors and income levels of users will lead to a level of understanding their users that the world has never experienced in the history of marketing.
Sure, banks already know and sell your purchase data to marketing organizations. But they don’t know you also watch cat videos and creep on your ex while watching Game of Thrones before you go to bed. And yes, it sounds a little Orwellian but what harm could it do to give one singular company, which is controlled by one singular man, the power over the majority of the world’s major communication and economic channels?
The good news is that you’ll probably be able to use that data to reach your target audience on Facebook owned channels like Instagram and WhatsApp.
It will also likely speed up the speed of online purchases processes initiated through the platform, which means more sales and a greater profit margin, for you and for Facebook.