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Breaking: CFTC discussing Facebook GlobalCoin project

Amandeep Sonewane | Jun. 3, 2019
Breaking: CFTC discussing Facebook GlobalCoin project

3 June 2019 | AtoZ Markets - Facebook will launch its own cryptocurrency - GlobalCoin in 2020. The social media giant is planning to start the testing phase of its digital currency by the end of this year. According to AtoZMarkets report, the social media giant is planning to set up a digital payments system in a dozen countries by the first quarter of 2020. The company as already spoken with a number of financial experts including Bank of England governor Mark Carney, and money transfer institutions, like Western Union.

Facebook CEO Mark Zuckerberg has already been discussed with Mark Carney the opportunities and risks involved in launching a crypto-currency. The social media giant also contacted US Treasury officials on operational and regulatory issues.

Now, FB has entered into discussions with the U.S. Commodity and Futures Trading Commission (CFTC) about its forthcoming crypto stablecoin project.

What CFTC is discussing about Facebook GlobalCoin project?

As per the report, the CFTC chairman Christopher Giancarlo stated that the agency has been a part of very phases of the discussion with Facebook. The main goal behind these discussions is to determine whether Facebook’s stablecoin could possibly fall under the CFTC’s regulatory remit.

CFTC Chairmen Giancarlo has quoted that: “We’re very interested in understanding it better. We can only act on an application, we don’t have anything in front of us.”

Facebook has been in talks with government officials in the U.S and U.K to discuss use cases and regulatory issues for Facebook's GlobalCoin - forthcoming crypto stablecoin. Moreover, GlobalCoin falls under Facebook’s Project Libra which is reportedly aimed at allowing Facebook’s global community to make online transfers and purchase as well. 

CFTC's chairmen stated that it’s too early to say whether GlobalCoin could fall under CFTC’s remit. However, if crypto could be backed by the USD, then there would be less of a need for derivatives tied to it. Giancarlo stated that Facebook is very clever on the design of the stablecoin.

However, it must be noted that the core compliance issue faced by regulators and in this case Facebook, is whether the social network will comply and implement the necessary anti-money laundering and know-your-customer (KYC) measures.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.