Tuesday, May 26, 2020

Facebook’s Libra seen as a threat at the Basel G-7 meeting

The Takeaway:

Authorities all over the world remain highly skeptical of Facebook's crypto project. On Monday Libra representatives met with Bank for International Settlements and officials from several Central banks to discuss the regulatory issues surrounding stablecoin.

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Since Facebook announced its decision to launch Libra next year, authorities from all over the world are questioning intentions of the social media giant. Earlier this week Libra Association representatives met with the Committee on Payments and Market Infrastructure (CPMI), a part of the Bank for International Settlements (BIS) to discuss the regulatory issues around the stable coin Libra.

French finance minister earlier said that they would not allow the development of Libra on European soil. It is possible that Libra might not get regulatory clearance from European authorities. 

Many regulators have claimed that Libra might compromise the monetary sovereignty of countries and thus should be banned. Facebook executive and head of Calibra came in defense of Libra as he took to twitter to ‘debunk” some notion surrounding Facebook’s cryptocurrency. 

David Marcus, in a series of tweets, clarified that Libra does not pose a threat to the monetary sovereignty of nations. He wrote that Libra is a payment and network system that would run on top of existing currencies.  

Earlier when David Marcus testified in front of the US Senate, he promised that they would not go ahead with the project without meeting all the regulatory norms. And once again Marcus insisted that they will continue to indulge in dialogue with Central Banks, Regulators, and lawmakers to address their concerns.

It seems like Facebook is trying everything to persuade regulators, from hiring lobbyists to meet them to address their concerns. But the majority of authorities all around the world remain highly skeptical of this Facebooks’s project. Let us know in comments what do you think future holds for Libra?

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Charles Carter
Charles Carter
Charles is an experienced researcher with a Master of Public Administration degree from Humber College, Canada. Apart from being fascinated about blockchain and cryptocurrencies, he loves to drive around the town in his collection of cars.

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