As stated by the latest media reports, Facebook has started its consultations with the United States’ Commodity and Futures Trading Commission (CFTC) on the issue of its highly predictable crypto stable-coin initiative.
Christopher Giancarlo – the chairman of CFTC specified that the dialogue was at its infancy. And presently, the most imperative thing is to cognize is if GlobalCoin can actually fulfil CFTC’s supervisory requests. Yet, the assistance is open for negotiations and probing all the particulars of the initiative.
Conversely, simultaneously, it is too premature to provide answers to the questions like if Facebook’s GlobalCoin falls under CFTC’s guidelines. Christopher also stated that their case is backed by the USD.
Although CFTC considers the scheme of the venture quite shrewd, there are multiple other chief concerns to contemplate i.e. social media hulk’s impending of AML and know-your-customer (KYC) actions. The organization needs to look forward to seeing how these trials, will be realized and employed.
CFTC is not the sole body that is having discussions with Facebook. Formerly, it has been exposed that Facebook is in talks with some government officers in the UK and USA with a goal to find breaks for GlobalCoin.
According to the firm’s policies, the unveiling of its stablecoin will take place in 2020. It will be rolled out in the outline of Facebook’s Project Libra. The coin will present a suitable choice to ensure cross-border money transferals.
In addition, Facebook is now striving to push its crypto project quickly. For e.g, it is holding discussions with crypto exchanges and high-frequency trading platforms.
Currently, Facebook is dialoguing founders of popular cryptocurrency exchange Gemini, Winklevoss twins. Though, again, it is hard to predict if these two firms will reach pact.