- Facebook is currently talking with the CFTC and other regulatory agencies
- The goal is to be compliant with the current regulatory framework
Facebook seems to be discussing with the U.S. Commodity and Futures Trading Commission (SFTC) about the blockchain and crypto initiative that the social media platform started. The information was released by the Financial Times in a recent report.
Facebook and CFTC Discuss GlobalCoin’s Influence
As per the report, CFTC chairman Christopher Giancarlo, explained that the agency has been talking with Facebook regarding the future project and virtual currency GlobalCoin. The main intention is to understand whether the digital currency is able to operate under the CFTC and its regulatory oversight.
Mr. Giancarlo commented about it:
“We’re very interested in understanding it better. We can only act on an application, we don’t have anything in front of us.”
According to some reports, Facebook has been in talks with other governments in the United States and the United Kingdom. The goal is to be compliant with the regulations imposed by these countries. Facebook wants to build a virtual currency called GlobalCoin that could be used by users to make purchases in different shops and other places. It would also be possible to make peer-to-peer transactions as well.
The digital currency is expected to be a stablecoin that will not have a fluctuating price and that will be stable compared to other virtual currencies in the market. Apparently, Facebook is going to be backing it with cash reserves.
The project that Facebook is working on is called “Project Libra” and it aims at helping users perform online and digital purchases around the world. In the beginning, reports suggested that the social media platform wanted to create a stablecoin to perform cross-border transactions and help Indian WhatsApp users.
Facebook owns Instagram and WhatsApp as well, increasing the reach that the company has over large numbers of individuals around the world.
According to the report released by the Financial Times, Giancarlo explained that if the cryptocurrency created by Facebook is backed by the U.S. dollar, then there might be less of a need for derivatives tied to it. Moreover, Facebook is clearly going to be implementing Anti-Money Laundering and Know Your Customer measures to be sure that regulators allow it to be used.
Congressman Brad Sherman Wants To Ban Bitcoin and Digital Assets In The United States
The Democrat Congressman Brad Sherman wants to ban cryptocurrencies in the United States by passing a new law. He wants his colleagues to join him and introduce this bill to outlaw digital currency purchases by Americans.
Sherman seems to have a very hard stance toward digital assets. The Congressman from California said on May 9 that cryptocurrencies could undermine the U.S. dollar and it is only useful for criminal activities such as money-laundering, drug-dealing and tax evasion.
He has also explained that crypt enthusiasts want to replace fiat currencies, which is something unacceptable.
O the matter, he commented:
“An awful lot of our international power comes from the fact that the U.S. dollar is the standard unit of international finance and transactions. Clearing through the New York Fed is critical for major oil and other transactions.”
He said that crypto supporters support Bitcoin, which would not allow American sanctions to be effective in countries such as Iran. Support for digital assets would undermine U.S. capabilities abroad, tax collection enforcement or even traditional law enforcement.
Today in Congress Rep. Sherman called for a bill to ban all cryptocurrencies.
This is why Coin Center is needed in DC now more than ever. pic.twitter.com/jgikm7z8bI
— Coin Center (@coincenter) May 9, 2019
He has also attacked Bitcoin and cryptocurrencies because there are terrorists using Bitcoin for funding their operations. This is the case of the terrorist group Hamas that has requested several times donations in Bitcoin. ISIS has also asked supporters to send Bitcoin donations because they are more difficult to be traced and provide more anonymity than other systems.
Congressman Sherman shows that these are just some examples of how cryptocurrencies are being used by criminals and other countries in order to avoid US sanctions and control. Thus, Bitcoin and digital assets are detrimental to America’s foreign policy.
There are several Republicans in favour of digital currencies that are trying to improve their presence in the whole market. One of five U.S. Securities and Exchange Commission (SEC) commissioners, Hester Peirce, is pro-Bitcoin and has been nicknamed “Crypto Mom.”