Facebook discusses its crypto stablecoin idea with CFTC

Moving forward with its crypto stablecoin initiative, Facebook has ignited a discussion with the US Commodity and Futures Trading Commission (CFTC).

According to the Financial Times, CFTC Chairman Christopher Giancarlo confirmed that the agency held "very early stages of conversations" with Facebook, news portal Coin Desk reported on Sunday.

The goal of the meeting was to better understand if Facebook's crypto stablecoin could potentially fall under the CFTC's regulatory remit.

"We're very interested in understanding it better," Giancarlo was quoted as saying in the report. "We can only act on an application, we don't have anything in front of us."

The news comes amid recent reports that Facebook also held talks with government officials in both the US and the UK to discuss opportunities and regulatory issues for its crypto stablecoin called GlobalCoin.

The crypto-currency, under Facebook's "Project Libra", is reportedly aimed to allow Facebook's global users to transfer money across borders and to make online purchases.

However, one highlighted compliance issue by regulators is whether and how Facebook will adhere to and implement the anti-money laundering and know-your-customer measures, the report added.

--IANS

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