Facebook has started a discussion with the U.S. Commodity and Futures Trading Commission (CFTC) over the social media giant’s crypto stablecoin initiative.
According to a report from the Financial Times on Sunday, the CFTC chairman Christopher Giancarlo said the agency held “very early stages of conversations” with Facebook. The goal was to better understand if the firm’s crypto stablecoin could potentially fall under the CFTC’s regulatory remit.
“We’re very interested in understanding it better,” Giancarlo was quoted as saying in the report. “We can only act on an application, we don’t have anything in front of us.”
The news comes amid recent reports that Facebook also held talks with government officials in both the U.S. and the U.K. to discuss opportunities and regulatory issues for its crypto stablecoin called GlobalCoin.
The cryptocurrency, under Facebook’s Project Libra, is reportedly aimed to allow Facebook’s global users to transfer money across borders and to make online purchases.
Giancarlo added it’s now too soon to say whether Facebook’s GlobalCoin could fall under CFTC’s remit but said if the cryptocurrency could be backed by the U.S. dollar, then there might be less of a need for derivatives tied to it.
“That’s very clever,” Giancarlo said of this design. However, the report added that one top compliance issue by regulators is whether and how Facebook will adhere to and implement the anti-money laundering and know-your-customer measures.
Facebook Launch New Payments System Amid Libra Concerns
- Facebook has just launched a new fiat payment system dubbed Facebook Pay.
- This payment system is designed to facilitate payments across several media platforms.
- The network has stated that the new platform of Facebook Pay is “built on existing financial infrastructure and partnerships.”
Facebook has just launched a new fiat payment system dubbed Facebook Pay, despite the regulatory backlash it has received thanks to its Libra stablecoin.
Earlier this week, the social media conglomerate revealed that it is going to be bringing in a new system called Facebook Pay. This payment system is designed to facilitate payments across several media platforms including Messenger, Instagram, WhatsApp and of course, Facebook.
VP at marketplace & commerce at Facebook, Deborah Liu said:
“People already use payments across our apps to shop, donate to causes and send money to each other. Facebook Pay will make these transactions easier while continuing to ensure your payment information is secure and protected.”
In what seems to be a move to further dodge regulatory hatred, the network has stated that the new platform of Facebook Pay is “built on existing financial infrastructure and partnerships.”
In a similarly clear sense, Facebook has said that the payment service will be kept separate from the social networks new Calibra wallet and of course, the Libra network.
The new Facebook Pay system is getting ready to start rolling out this week on both Messenger and Facebook in the United States for “fundraisers, in-game purchases, event tickets, person-to-person payments on Messenger and purchases from select Pages and businesses on Facebook Marketplace.”
Ending the announcement, Facebook ends stating their belief that the firm can “help businesses grow and empower people everywhere to buy and sell things online.”
Facebook’s 6-Year Wait Comes to An End: Patent for Personal Finance Tracking Tool Gets Ratified
Facebook gets patent approval from application submitted in 2013 for a new personal finance tool that enables financial transaction tracking as the social networking system looks ahead to Libra launch.
Facebook’s 2013 patent for a personal finance tracking tool gets approved reports BeInCrypto. As per the news outlet, the tracking tool compares a user’s financial spending to those based on relatable benchmarks. This will allow a user to have an idea of where they lie in terms of percentile.
Here’s an extract of the patent that has been shared:
“Allows its users to obtain reports of their spending compared to various benchmarks. The benchmarks may be for various demographic groups, networks to which the user belongs, groups of users connected to a user or any other suitable grouping of users.”
Given that the patent has been accepted several years later since filing for it, it becomes questionable whether this is still a goal in place for the social media outlet. With the concerns they currently face in relation to their Libra project and having been under the spotlight for breach of data privacy, taking on a finance tracking tool might not be considered.
Speaking of the Libra project, so far, leaders around the world seem to turn down the idea simply because of the social media’s scarring with data privacy and the fact that such a project would result in them having too much power. Given that Facebook has also been accused for having the ability to influence elections outcomes, adding more power can be too dangerous, especially in the financial world.
Facebook has since lost a number of partners including the likes of PayPal, Visa, Mastercard, eBay and Stripe – all early members of the Libra Association – and according to CEO, Mark Zuckerberg, whether they choose to pursue Libra or not rests in the U.S’ decision regarding regulatory approval.
Facebook Granted Patent for Personal Finance Tracking Tool Amid Global Libra Concerns
Facebook has had a 2013 patent related to personal finance approved. The patent describes a tool that tracks and compares the financial transactions of users against other users, purportedly to better help them manage their spending and note trends based on their demographics.
In 2013, the social media giant Facebook filed a patent for a tool that tracks users’ financial transactions and benchmarks it against other users from a similar demographic. The six-year-old patent has finally been approved and is yet another finance-related patent under its belt.
Facebook Granted Another Finance Patent
The patent reads:
“…obtains financial transaction activity for its users and allows its users to obtain reports of their spending compared to various benchmarks. The benchmarks may be for various demographic groups, networks to which the user belongs, groups of users connected to a user, or any other Suitable grouping of users. The social networking system may also forecast a user’s spending on a category based on the spending of other users who have similar spending profiles in other categories.”
There is no guarantee that Facebook will follow through on the patent, as technology companies are notorious for filing patents without ever bringing a related product to light. It is, however, a stark reminder of the exploitative nature potential of companies that already possess a vast amount of user data. Facebook has been front and center at much of the data privacy worries that have emerged in recent years.
Facebook’s suspect nature has also made its presence known in the recent debacle that has been the Libra cryptocurrency. Critics argue that it is a vast power grab by Facebook, which already holds an enormous amount of influence — certainly enough to affect elections and public opinion. It is argued that a move into finance would only give the company more power in more industries.
Looking to Other Means for More Influence
Facebook’s Libra cryptocurrency has endured several salvos worth of criticism in recent months, after lawmakers across the world, in addition to incumbent crypto entities, have criticized it the project for being an overreach. Several members of the original 28-member Libra Association have already departed, including Visa, MasterCard, PayPal, eBay, and Stripe.
The backlash does not seem to have stopped Facebook from continuing on in its goal. Facebook founder and CEO Mark Zuckerberg was recently questioned by the United States Congress on Libra, and said that it might come to the point where Facebook would have to leave the Libra Association if it did not receive regulatory approval from the United States.