Facebook in talks with CFTC over GlobalCoin cryptocurrency plans

Facebook held discussions with the US Commodity and Futures Trading Commission (CFTC) over its plans to launch a GlobalCoin cryptocurrency.

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US interested in Facebook Cryptocurrency

Financial Times reported on 02 June that CFTC chairman, Christopher Giancarlo held early-stage discussions with the social media giant concerning the stablecoin.

It is aimed at better understanding Facebook GlobalCoin cryptocurrency and if whether or not it meets the regulatory standards of the U.S. regulator.

The social media giant was also recently reported holding talks with government officials in both the U.S. and the U.K. to talk about specific regulatory issues and economic opportunities for its stablecoin cryptocurrency.

The digital currency, which falls under the Project Libra of Facebook, is said to aim at enabling the users of the social media site to buy products and services online and send money across borders.

Facebook's cryptocurrency plans move forwardhttps://t.co/2UPHS2F8Mp pic.twitter.com/Rwl0w7BMrG

— FutureShift (@futureshift) June 3, 2019

Giancarlo noted that while it is too early whether the cryptocurrency could fall under CFTC’s remit, U.S. dollar could back it up. This might consequently require fewer derivatives attached to it.

The CFTC chairman tagged the design as ‘very clever.’ Nonetheless, The F.T. report noted that some compliance issues that Facebook may face with regards the cryptocurrency is whether and how it will adhere to and implement know-your-customer and anti-money laundering measures.

Rumoured launch of Facebook cryptocurrency

Rumoured Facebook cryptocurrency plans made rounds online with several sources seeing a global payment network form that spans both the social media site and its sister businesses Instagram and Whatsapp.

Upon its launch, app users are enabled to make in-app purchases and send peers funds.

Late last month, F.T. claimed that executives of the social media giant were in similar early-stage conversations with U.S. cryptocurrency exchanges Gemini and Coinbase over the launch and potential liquidity solutions. None of them, however, confirmed the plans.

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