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Facebook has announced plans to launch its own cryptocurrency in 2020.

The currency, initially dubbed GlobalCoin, will be tested later this year before being rolled out to 12 countries in the first quarter of 2020.

It is understood the social media giant’s founder Mark Zuckerberg has discussed the plans with the governor of the Bank of England, Mark Carney, as well as officials from the US Treasury. The move does not require their approval, but Mr Zuckerberg has sought advice on the risks and logistics of creating a currency.

Facebook is expected to announce more details in the summer, but reports suggest the cryptocurrency could be used for purchases on its Marketplace.

Cryptocurrencies have typically fluctuated dramatically in value since their creation, but it is believed that Facebook is looking to link GlobalCoin to established, traditional currencies in order to prevent those wild swings.

Facebook has previously launched its own digital currency – Facebook Credits. It was designed to allow users to purchase apps on the site, but it was scrapped after two years.