United States regulatory organization – the Commodity Futures Trading Commission (CFTC) is in talks with Facebook Inc, seeking details of its upcoming stablecoin launch.
According a report by Financial Times UK, CFTC Chairman J. Christopher Giancario, says the agency has held early conversations with Facebook; with the meet up aimed at smoothening the regulatory landscape ahead of the asset launch. Giancario also stated:
We’re very interested in understanding it better especially as no formal request for regulatory clearance has appeared…We can only act on an application, we don’t have anything in front of us.
Referring to Facebook’s reluctance to divulge specific details of the “Project Libra“.
This latest news comes on the heels of other meetings held with government and financial officials in the U.S and UK.
Facebook’s crypto involvement keeps buzzing headlines around the space as it is viewed as a catalyst for adoption. The social media giant is reported to be eyeing the launch of a global payment network dubbed “GlobalCoin” for its native Facebook platform and its sister apps – WhatsApp and Instagram.
The payment network is slated to go live in 2020, and will promote cross-border digital payments among users as well as utility for in-app purchases.
Additionally, the CFTC Chair described the decision to peg the cryptocurrency to the U.S dollar as “very clever.” However, a major concern remains how Facebook will implement AML measures and KYC requirements.
