Facebook is now talking with financial regulators throughout the United States regarding its plans for an upcoming cryptocurrency.
The Coin Is Really Happening
While the details of these meetings have not yet been released, it’s clear that the social network is very serious about its plans to release a digital currency for users, and that the coin just might emerge when executives claim. Recently, it was stated that Facebook Coin would be ready no later than 2020. At the rate it’s going, Facebook is in line to produce the coin on time.
Facebook has had to deal with a few barricades along the way. Recently, chief executive Mark Zuckerberg was grilled by Senate members who requested details regarding the company’s new “Project Libra” cryptocurrency payment network. Project Libra is slated to give users the ability to purchase goods and services through Facebook’s WhatsApp platform with Facebook Coin. They can also use the asset to purchase items through online merchants that provide Facebook login options on their sites.
Senate members wanted information regarding Project Libra given Facebook’s previous ties to Cambridge Analytica. The scandal involving the firm was revealed in April 2018 when it was suggested that Facebook had allegedly been selling the private information of its customers to third parties for advertising purposes.
Congress was eager to know how Facebook would potentially protect the financial information of its clients, which it would have access to through the Libra Network. The big question was that if Facebook proved incapable of protecting its users’ private data beforehand, how could it be trusted to keep an eye on their financial data?
Mark Zuckerberg has also had to overcome what could be considered a long-term feud with Gemini Exchange creators Cameron and Tyler Winklevoss. The Twins are primarily known for suing Zuckerberg and claiming that Facebook was originally their idea while all three were students at Harvard. The case was ultimately settled, and the details of the case were immortalized in the 2010 Oscar-winning hit, “The Social Network.”
Cryptocurrency is one area where the Winklevoss Twins seem to know more than Zuckerberg. He ultimately had to put his differences with both men aside and request their knowledge and guidance with Facebook’s crypto project.
Will Facebook Coin Be a Commodity?
What is known specifically is that Facebook spoke with members of the U.S. derivatives regulator known as the Commodity Futures Trading Commission (CFTC) over its ongoing crypto plans. The CFTC is unique in that it is hired to monitor all activity surrounding bitcoin, while most other cryptocurrencies are considered securities and are thus monitored by the Securities and Exchange Commission (SEC).
Facebook, however, has remained relatively quiet regarding its talks with the CFTC, and has not issued comment to any news outlets or reported sources.