Facebook is talking with U.S. Commodity and Futures Trading Commission (CFTC) about Facebook’s planned Globalcoin. It will be a crypto stablecoin initiative. The Financial Times reports the CFTC chairman Christopher Giancarlo said the agency held very early stages of conversations with Facebook. The goal was to better understand if the firm’s crypto stablecoin could potentially fall under the CFTC’s regulatory control.
“We’re very interested in understanding it better,” Giancarlo was quoted as saying in the report. “We can only act on an application, we don’t have anything in front of us.”
Facebook is talking with government officials in both the U.S. and the U.K. to discuss opportunities and regulatory issues for its crypto stablecoin called GlobalCoin.
Facebook’s Project Libra will allow Facebook’s users worldwide to transfer money across borders and to make online purchases.
Facebook is currently in talks with Visa, Mastercard, First Data and various merchants to create the network which has the potential to serve the one-third of the world’s people who log on monthly to Facebook.
Facebook is planning to launch a full payments network including remittances.
Facebook is getting $1 billion in investments collectively from financial firms for collateral and support of the stablecoin.
The stablecoin will be the currency of the payments system to eliminate credit card fees for merchants but without the volatility of bitcoin and ether.
Facebook will probably link it to the Facebook core ads engine, rewarding users for viewing ads and then purchasing goods. It will be like loyalty points reward.
SOURCES- Financial Times, Facebook, Medium
Written By Brian Wang