On the surface, the announcement that Facebook plans to launch a new ‘GlobalCoin’ currency in 2020 is just another milestone in the ongoing expansion of the social media behemoth. But beyond the obvious opportunities that it may offer, the announcement reveals something else about where these platforms are heading.
The aim of the new currency is not simply to give Facebook a stake in the troubled but expanding crypto-currencies market. It is much more likely that GlobalCoin will be part of what is sometimes referred to as ‘social commerce’. Social commerce seeks to enable purchasing to happen directly on a social media platform, without the need to actually leave that platform. As well as targeted advertising and other content, this means that we would also be presented with buying options and possibilities for immediate transactions.
According to the GlobalWebIndex report on social media trends, interest in being able to purchase directly through promoted content on social media stands at only around 12%. Privacy was inevitably raised as one key concern. Despite this survey result, global trends seem to indicate the expansion of social commerce. Further transformations in the technology are also likely to impact upon such reservations. Indeed, Facebook having its own currency is likely to smooth the expansion of social commerce by tackling issues around trust and also by making it more convenient for purchasing to stay within its realms.
