Operator of the world's largest social network Facebook Inc. held talks with the US Commodity Futures Trading Commission (CFTC). The main theme was a stablecoin called GlobalCoin, reports the Financial Times, citing the head of department, Christopher Giancarlo.
The discussion is in the early stage. CFTC intends to find out whether GlobalCoin falls under its regulation. The agency expressed a desire to better understand the nature of stablecoin, says the publication.
Earlier, the media reported that Facebook is already in talks with representatives of the US Treasury and Bank of England governor Mark Carney, as well as with Western Union, Visa and Mastercard regarding the initiative, code-named Libra.
At the beginning of May, The Wall Street Journal announced the development of Libra, a new payment network based on a steylcoin secured by a basket of fiat currencies.
At the moment, CFTC is allegedly not sure whether GlobalCoin falls under their regulation, however, they believe that if stablecoin is pegged to the US dollar, then derivatives may not be needed.
On May 2, Facebook registered Libra Networks in Geneva, Switzerland. It profile involves the development of infrastructure and software, in particular, related to investment activities, payment transactions, financing, identity management, data analysis, Big Data, blockchain and other technologies.