According to Cryptoglobe's June 3 report, Christopher Giancarlo, chairman of the US Commodity Futures Trading Commission (CFTC), revealed that social media giant Facebook and CFTC have been discussing the development details of its stable currency, GlobalCoin.
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According to the Financial Times, the CFTC hopes to determine whether Facebook's stable currency can be considered and regulated by traditional financial instruments under the current regulatory framework. Giancarlo said that CFTC is happy to understand the upcoming GlobalCoin, but will strictly control the "application." He also clarified that Facebook did not provide any details about GlobalCoin to CFTC in writing.
It is worth noting that the recent Facebook management has discussed with the US and other government agencies and officials on the stability of the currency. In a previous report, Facebook said GlobalCoin will be used primarily for cross-border payments and e-commerce settlement transactions . GlobalCoin is part of the Facebook blockchain project Project Libra.
Although it is still too early to classify GlobalCoin as a specific type of financial instrument regulated by the CFTC, Giancarlo pointed out that if GlobalCoin is supported by the US dollar, it may not be bundled with derivatives. Giancarlo acknowledges that the overall design of Facebook's latest stable currency program is "very smart," but it may face major compliance issues such as KYC and anti-money laundering (AML) reviews.
In early April 2019, Nathaniel Popper, a New York Times reporter and author of Bitcoin's best-selling book Digital Gold, revealed that Facebook plans to raise $1 billion for cryptocurrency projects. At the same time, Popper believes that one of the biggest attractions of the blockchain is decentralization.
Facebook may not need to raise funds because it has total assets of about $100 billion and $84 billion. However, analysts believe that its management may plan to work with outside investors to make the encryption project look "more dispersed and less controlled."