Facebook Launching Own Digital Coin By 2020

Posted: Jun 3 2019, 5:33am CDT | by , in Technology News

 

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Facebook launching own digital coin by 2020
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The social media giant is set to join the crypto revolution.

Facebook Inc. is expanding its tech offerings to include its own digital coin, the Financial Times reported, citing an interview with the head of the U.S. derivatives regulator.

Christopher Giancarlo, outgoing head of the U.S. Commodity Futures Trading Commission, confirmed to the news outlet that the agency is in “very early stages of conversations” with the social media giant over its plans to foray into digital cryptocurrency. The talks reportedly include understanding where Facebook’s plan would fall under the commission’s scope.

“We’re very interested in understanding it better… We can only act on an application, we don’t have anything in front of us,” Giancarlo told the FT.

The move is expected to pave the way for Facebook’s push into payments and offer a solution for its users to send money to each other or buy things on the Facebook platform, as well as on Instagram and WhatsApp, which are also owned by the company. This strategy could challenge e-commerce player Amazon, which is currently valued at $873.92 billion, well above Facebook’s valuation of $506.59 billion as of May 31.

Facebook reportedly coined its new cryptocurrency as “GlobalCoin.” According to Giancarlo, it is not yet known whether Facebook’s digital coin would trade via futures rather than the cash-based market. If it trades under the latter, the plan would fall outside of the CFTC’s jurisdiction, Giancarlo reportedly said.

The report said regulators are also concerned about whether the social media company would be able to adhere to stringent rules over money laundering.

The Japan Times recently reported that the G20 group of major economies — which counts the U.S. and U.K., Australia, Canada, India, Germany, France, Japan, Russia, and China, among others — are planning to ramp up the fight against money laundering and terrorist-group funding through the use of cryptocurrencies.

The FT noted that the U.S. Treasury’s Financial Stability Oversight Council has a crypto working group that examines issues including banks’ exposure to digital assets, and “illicit activity undertaken with digital assets.”

A source briefed on the matter reportedly said that Facebook was in talks with the U.S. Treasury in recent weeks to provide updates on its project.

The FT report comes more than a week after it was reported that the company held talks with the Winklevoss twins, founders of digital currency exchange platform Gemini Trust Co., to help it secure regulatory approval.

A tie-up with the Winklevoss twins seems unlikely for Facebook. The FT noted that the Winklevoss twins have sued Zuckerberg in the past for stealing their social network idea ConnectU. They won a $65 million settlement and Facebook shares as a result, the report added.

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<a href="/latest_stories/all/all/81" rel="author">Mandy Jean</a>
Mandy covers the latest news in Tech and Business.

 

 

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