Developments

Facebook Globalcoin currency to be monitored by a third party

Facebook has been courting tech companies and financial institutions in the past few months to join a new independent foundation. The foundation will have the responsibility to oversee the implementation of the social media giant’s cryptocurrency, Globalcoin currency.

According to reports, the social media giant plans to give control of its cryptocurrency to a third party to help create trust. Facebook has been having active talks with a number of financial institutions and tech companies to create a team responsible for monitoring the processes of its planned blockchain network.

Facebook hopes that the creation of an independent foundation for its Globalcoin cryptocurrency will reassure financial watchdogs among other concerned parties.

Currently, Facebook is in talks with the United States Commodity Futures Trading Commission (CFTC) in anticipation of its coin launch. Although no formal application has been filed, Globalcoin will be a stablecoin tied to multiple fiat currencies like the euro and dollar.

A few months ago, rumors about Facebook’s ambitious cryptocurrency project is finally coming together, rendered the air. The Globalcoin currency is part of the social media platform’s greater Project Libra.

Top issues are how Facebook will be able to implement proper anti-money laundering protections while KYC will be mandatory for all users planning to utilize its cryptocurrency.

It wants to create a Globalcoin that provides secure and affordable ways of making payments for those with or without a bank account.

As Facebook is courting major financial institutions to create an independent overseer for its project, Globalcoin is fast taking form. We are waiting to hear an official announcement from Facebook of when the Globalcoin will be launched and the third parties chosen to maintain the network.

Do you think Facebook’s plan to create an independent foundation to monitor its Globalcoin currency will increase adoption for the coin?

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coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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