Popular Firearms Marketplace GunBroker to Launch 'FreedomCoin' Stablecoin

Leading firearm marketplace GunBroker.com is reportedly set to launch a stablecoin called ‘FreedomCoin’ that’s set to be used on its platform, in a move meant to help firearms merchants transact without dealing with financial institutions’ restrictions.

According to a recently published press release, the stablecoin is set to be a “regulatory compliant corporate currency,” developed by ICOx Innovations Inc, for GunBroker. The online marketplace lets users buy and sell hunting, outdoor sports, and firearms products. It has over 4.7 million users, and sees over $600 million in transactions per year.

GunBroker’s users will in the near future be able to accept FreedomCoins in their transactions, using blockchain technology to “replace the need for other costly and time-consuming payment options.” Users will be able to convert USD to freedomCoins via an “easy-to-use app” on the platform, which is reportedly designed to meet know-your-customer (KYC) and anti-money laundering (AML) compliance.

Bruce Elliot, the president of ICOx Innovations, noted that this is one of the cases in which a “compliant cryptocurrency can truly replace the need for other costly and time-consuming payment options which is something of extreme value to GunBroker’s users. Per his words, given the marketplace’s size, this could “potentially become the most retail transacted cryptocurrency in the US.”

Steven F. Urvan, the CEO and CTO of GunBroker, was quoted as saying:

Anyone who has purchased a firearm knows how painstakingly brutal it can be to deal with traditional credit card companies and other financial institutions. Thanks to ICOx and BitRail, now we can virtually eliminate that problem and expose a whole new segment of gun and outdoor enthusiasts to the world of digital payments.

ICOx USA, a subsidiary of ICOx Innovations, was contracted by FreedomCoin LLC to create the cryptocurrency.  It’ll “charge up to” $2 million for its design and development, while being allowed to acquire an up to 20% stake in FreedomCoin LLC, an organization presumably established to manage the cryptocurrency.

 Notably, ICOx Innovations was reportedly behind the KodakOne platform, a blockchain-based image rights management platform licensed by Kodak. Recently, KodakOne shocked critics by announcing a million dollar beta test.

Russia Will Not Legalize Facebook's Libra Says Top Official

A top Moscow official has said that Facebook's planned new cryptocurrency Libra will not be legalized Russia, according to a report this week from Russia's state-run news agency TASS.

Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets, said Russia would not legalise the Libra stablecoin, due for launch next year, as it may pose a threat to the country's financial system.

No Russian Liberty for Libra

While Aksakov acknowledged Russians would be able to buy Libra on international cryptocurrency exchange platforms, he warned that the creation of any domestic mechanisms of exchange would be limited, or even prohibited.

TASS quoted Aksakov as saying:

With regard to the use of Facebook cryptocurrency as a payment instrument in Russia at this stage - my opinion is that in our country it will be banned.

He added that in Russia there were no plans to adopt legislation that "gives space for active use of crypto-tools created in the framework of open platforms and blockchains" that may pose a threat to Russia's financial system.

International Ministers Speak Out

Aksakov is not the first financial minister to express concerns over Facebook's cryptocurrency plans and their potential to damage sovereign currency markets and financial stability.

On Tuesday, French economy minister Bruno Le Maire, said that global governments must ask Facebook for "guarantees" that Libra will not be aimed as a disruptive force against sovereign currencies.

Facebook's plans have US government and regulatory officials so rattled that a Senate hearing by the Banking, Housing and Urban Affairs Committee has been scheduled for July 16. The government has asked Facebook to halt work on the project until the hearings have been held.

Sherrod Brown, senior Senator for Ohio and the Democratic Party's ranking member of the Senate Banking Committee, said on his Twitter feed on Tuesday: "Facebook is already too big and too powerful, and it has used that power to exploit users’ data without protecting their privacy. We cannot allow Facebook to run a risky new cryptocurrency out of a Swiss bank account without oversight."

While Aksakov has major concerns about the growth of the cryptocurrency sector, Deputy Finance Minister Alexei Moiseev said on Wednesday that the Russian government was set to adopt the country's crypto bill "On Digital Financial Assets" in the next two weeks.