U.S. market regulator the Commodity Futures Trading Commission (CFTC) has reportedly initiated talks with social media platform Facebook concerning the launch of the company’s new cryptocurrency.
The Financial Times has cited CFTC chairman J. Christopher Giancarlo as saying that Facebook wants to ensure that there are no regulatory hurdles as it moves closer to the launch of the stablecoin ‘GlobalCoin’ in 2020.
Giancarlo said that the regulator also wants to use the opportunity to better understand the project. According to the FT, the CFTC chief added that at the moment, the agency had not received any formal request that seeks regulatory clearance from the regulator.
He noted that what the watchdog can do is to “act on an application,” and at the moment, there was nothing in front of the commission.
Facebook has for the last year been said to be developing a stablecoin to be used in its ecosystem, but the company has itself divulged very little in that period. But despite the apparent secrecy, speculation has mounted in recent months that GlobalCoin will be used in Facebook’s global payment network that could include money transfers on both Whatsapp and Instagram.
Other than being able to send funds to one another, the stablecoin will allow users to pay for in-app purchases.
The reported talks between CFTC and Facebook surface just days after another FT report noted that the social media company was talking with Coinbase and Gemini. The discussions with the crypto exchanges were ostensibly due to market creation and provision of liquidity for when the crypto finally goes live.
Last week, a senior executive at bitcoin payments processor BitPay noted that the launch of GlobalCoin could reignite major interest in bitcoin. That, according to the exec, would help mainstream adoption as well as boost BTC prices.