Facebook has started to conversate with the U.S. Commodity and Futures Trading Commission (CFTC) over it’s proposed a version of stable coin named “GlobalCoin” cryptocurrency and the intends of how the project would be going to work in the cross border payments.
Reportedly, Christopher Giancarlo, the American attorney and the CFTC chairman said the agency conducted “very early stages of conversations” with Facebook. The object of the talk was to have a sound understanding of the Facebook stablecoin and to identify whether the project falls under the CFTC’s regulatory remit.
As per the information the Washington-based US derivatives regulator is interested in having a clear knowledge and concerned about the fact of not having anything in front of them, the body can only act on an application and the clarifications provided to them by the social media giant.
The CFTC is an Independent authority of the U.S. government and has the complete right over future and derivatives and any financial instrument which would be purportedly tied with Globalcoin would fall under the radar of the officials and further bound to follow the rules and regulations.
Giancarlo further added that it’s now too soon to comment on whether Facebook’s GlobalCoin could fall under CFTC’s remit. However, if the cryptocurrency would be pegged by the U.S. dollar, then there might be less of a need for derivatives tied to it.
The stablecoin initiative, under Facebook’s Project Libra, is continuously in news due to the instant efforts by the company on how to legally launch the project which would be facilitating cross border transactions and online purchases for various goods and services. In the direction, the firm is holding talks with various organizations to adhere to all the rules and regulations in both the U.S. and the U.K state of affairs. The indulgence with CFTC officials is also a step following the amid discussions to comprehend the opportunities and regulatory issues connected with the launch and operations of the GlobalCoin.
Allegedly, Giancarlo also shown the apprehensions and inquisitiveness of the regulatory compliance issues on how Facebook would adhere to and abide by the anti-money laundering (AML) and know-your-customer (KYC) measures while pointing out the cleverness of the social media giant about the forthcoming digital currency that would be pegged to a basket of unknown but major fiat currencies.
Tags: Facebook, GlobalCoin, U.S. Commodity and Future Trading (CFTC), Christopher Giancarlo, Stablecoin, Regulation, Cryptocurrency, Project Libra, Money, AML, KYC, Fiat Currencies.