Facebook has begun negotiations with the CFTC (futures market regulator) on the development and implementation of its own cryptocurrency. Christopher Giancarlo, Chairman at the CFTC, said that the purpose of the first stage of the negotiations with the American high-tech giant was to establish the jurisdiction of the regulator.
Facebook has been planning to create a digital payment system for quite some time. It will allow the users of the social network, as well as Instagram and WhatsApp ones, to transfer funds to each other and buy goods both on the service platform and in the World Wide Web. The company was going to create an asset called stablecoin. Its peculiarity lies in the fact that it will be tied to fiat money, but there are no reserves for its provision. The currency will be called GlobalCoin.
Because the CFTC runs futures markets, any instruments associated with GlobalCoin must be controlled by this agency. For example, a substantial part of BTC trading is conducted through futures.
Currently, Facebook is asking various regulators to provide recommendations on the creation of a digital payment platform and the corresponding currency. Recently, the company has consulted on this project with the head of the Bank of England Mark Carney.
Easing of the rules regarding cryptocurrency advertising and similar projects, which Facebook announced in May, indicates that the company is committed to implementing the conceived platform.