Facebook continues to work on its planned stable coin. According to reports, the Tech Group has now started talks with the CFTC. One thing is certain: the planned Global Coin will not leave the financial market unchanged.
Only a few topics in crypto space currently provide so much material for discussion: digital giant Facebook is working on its own crypto currency. The stable coin currency will probably bear the name Global Coin. The starting date is the first quarter of 2020. The Silicon Valley Group has apparently taken the next step in this direction. It has started talks with the Commodity Futures Trading Commission (CFTC).
According to the Financial Times, the talks will show whether the stable coin planned by Facebook falls under the jurisdiction of the Securities and Exchange Commission. According to Christopher Giancarlo, head of the CFTC, the negotiations are at a “very early stage”. The authority has not yet received a motion. The decisive factor for the CFTC is whether the stable coin is traded via futures or cash-based markets. The Silicon Valley-based company, however, must also meet other requirements. According to the report, the regulatory authorities are interested in how the Mark Zuckerberg group is introducing measures against money laundering and the legitimacy check known as Know Your Customer.
Facebook works on blockchain-based payment network
The CFTC is not the only authority with which Facebook is said to have started talks. According to a BBC report, Facebook CEO Mark Zuckerberg met with Mark Carney, Governor of the Bank of England. This was also about the planned stable coin. Facebook is also in exchange with other representatives of the US government as well as with various players in the financial sector.
The Stable Coin, known as the Global Coin, acts as a motor for Facebook’s future payment platform Project Libra . The platform and crypto currency will probably be integrated into Facebook’s existing messenger infrastructure. This will give the Tech Group the opportunity to process financial transactions without recourse to traditional middlemen. This could have a lasting effect on the financial market. After all, Facebook has an enormous information advantage over banks and other traditional players.