Facebook has begun talks on creating its own digital currency with the Commodity Futures Trading Commission (CFTC), the regulator of the US derivatives market, Interfax reported.
CFTC CEO Christopher Giancarlo said that the regulator is conducting “very preliminary talks” with Facebook in order to understand whether the company's plans fall within its jurisdiction.
As reported earlier, Facebook is working on creating a digital payment system that will allow social network users to send money to each other, make purchases on its platform, in Instagram and WhatsApp apps, as well as on the Internet as a whole. Facebook’s plans also include creating a so-called stablecoin, a digital asset tied to a fiat currency (not backed up), which is expected to be called GlobalCoin.
The CFTC is responsible for futures and derivatives markets, and thus any financial instruments tied to GlobalCoin will fall under the jurisdiction of the regulator. For example, a significant share of bitcoin trading is carried out on the futures market.
Facebook turns to central banks and regulators, hoping to get some advice on a plan to create a digital payment system and its own digital currency.
The company discussed this project with the head of the Bank of England Mark Carney, Financial Times said.
Last month, Facebook also announced that it was easing restrictions on advertising related to cryptocurrencies and blockchain projects on its platform.