Bank Of Japan Considers Difficultly In Regulating Facebook’s Cryptocurrency Initiative

Japanese regulators join the list of agencies around the world that are analysing about how to deal with Libra, Facebook’s digital asset. It is not easy to create a regulatory framework for a new digital asset that breaks with the traditional concepts of fiat currencies.

  • Japanese authorities are analyzing how to better regulate Libra
  • There is a long list of countries concerned about Facebook’s crypto project

The central bank of Japan seems to be concerned about how to deal with Facebook’s Libra cryptocurrency. The digital asset is expected to be launched in 2020 to help users process transactions and payments. There are different regulatory agencies around the world that are trying to understand how to better regulate this virtual currency.

Regulators Get Worried About Libra

Since Facebook announced its digital asset, many regulatory agencies around the world have given their opinion about it and how to regulate it. According to a recent report released by Nikkei Asian Review, the Bank of Japan (BoJ) is concerned about the financial risks related to Libra and the difficulty of regulating it.

According to a BoJ official, Libra is expected to be moving money into an absolutely virtual world, so it is completely different than other forms of digital payments. Facebook’s digital currency is expected to be linked to the price of several fiat currencies that would back Libra’s value. This is the mechanism that is already used by other stablecoins in the market, including Tether.

The Governor of the Bank of Japan, Haruhiko Kuroda, remains careful about how cryptocurrencies evolve in the economy and whether they are used as a means of payment in the country. If they become used more and more they could eventually affect the financial and payment systems.

If there is an account holder at a regional bank that wants to purchase Libra, the bank would never be able to know whether the virtual coin’s operators would redeposit reserve funds with the institution. This also shows that Libra and other cryptocurrencies are a fundamental challenge to governments’ authority.

The report reads as follows:

“Should Libra's users lose faith and deplete its reserves in a rush to reclaim their cash, a real-world impact would follow. Criticisms have arisen painting Libra as a “selfish” attempt to implement only the convenient parts of cryptocurrencies while leaving real-life authorities to clean up the mess.”

As previously reported by Anthony Pompliano, Members of the Congress sent a letter to Facebook asking them to stop the development of the Libra cryptocurrency.

In this letter, the authorities claim that Libra could eventually rival the U.S. monetary policy and the dollar. Moreover, the representatives that signed this letter say that this raises serious privacy, trading, national security, and monetary policy concerns for users, consumers, investors and the whole economy.

Other countries such as the United Kingdom, France, Singapore, Russia and Italy have already raised their questions regarding Facebook’s digital asset. They are also all analyzing how to better regulate the virtual currency and which are the risks related to it.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Carl T
Carl T
Carl is a legend in cryptocurrency space for his long-storied experience, history and insights. He is a digital nomad who fell in love with bitcoin and its offspring for many years now and prides himself on delivering quality perspectives in the emerging world of crypto-assets and blockchain technology.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,483FansLike
2,795FollowersFollow
4,263FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

65% Vote For ‘Zero Compensation' For MakerDAO Vault Owners Who Lost $8M On Black Thursday Crash

MakerDAO votes against compensating vault owners following the Black Thursday crash in March of this year. Over 65% of the votes cast opted...

Gemini Crypto Exchange Opens Up GBP for Buying, Selling, and Trading for UK Customers

Cryptocurrency exchange Gemini is now expanding into the UK. The launch follows obtaining an electronic-money institutions (EMI) license from the Financial Conduct Authority (FCA) after...

Stocks & Gold Getting Hammered But Bitcoin Fundamentals Do Not Support A BTC Crash to $7k

In another red day of the week, Bitcoin dropped to about $10,150 level. Just like the weak price performance, with BTC currently trading around...

People's Bank of China (PBoC) Testing Digital Yuan (DCEP) for Credit Card Payments

China has been aggressively developing its central bank-issued digital currency (CBDC), popularly known as digital yuan. As per the latest reports, the People's Bank...

Indian Crypto Exchange, Pluto, Pulls An Exit Scam on Investors; Making Off With $270K

A Delhi-based crypto exchange, Pluto, has allegedly exit scammed and stolen about $270,000 worth from 43 investors. The local reports suggested that the Economic...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today