Facebook Holds GlobalCoin Cryptocurrency Talks With CFTC
By Mark Lemon – Cryptocurrency Dealer
Facebook’s enormous crypto stablecoin initiative is officially underway as the social media giant has opened talks with U.S. Commodity and Futures Trading Commission (CFTC), as discussed on Coindesk. The company could soon sell crypto and offer this token.
Financial Times reported on Sunday, Christopher Giancarlo, chairman of CFTC said that his company is in very early talks with Facebook. The main objective of these discussions is to see whether Facebook’s crypto stablecoin could potentially end up under the regulatory remit of CFTC.
Giancarlo quoted the following from the report:
“We’re very interested in understanding it better. We can only act on an application, we don’t have anything in front of us.”
Apparently, this recent development also comes during claims that Facebook has been talking with both UK and US government officials to go over opportunities as well as regulatory issues for GlobalCoin, which is Facebook’s crypto stablecoin. As users will be able to buy and sell crypto native to this chain for international transfer, it may require further regulatory measures.
The aim of this cryptocurrency, which is part of Facebook’s Project Libra, is to enable its users to not only make online purchases but also send money around the world instantly. Users may be able to buy and sell cryptocurrency native to this chain on the markets.
Despite such a powerful promise, Giancarlo says that it’s still too early to see whether GlobalCoin could come under CFTC’s remit. But he did say that if the cryptocurrency gets backed by the US dollar, they’d have to rely less on derivatives.
Giancarlo deems this design to be ‘very clever’ but the report did touch upon a major complaint made by regulators and that is determining if Facebook can bond with and implement the know-your-customer and anti-money laundering measures required.