Circle Research: Central Banks, Regulations Could Make It Difficult For Facebook’s Libra Project
- Facebook’s Libra could have some issues with regulatory agencies around the world
- The virtual currency was launched last week by Facebook
Facebook has recently launched its new crypto project and digital asset called Libra. There have been several analysts assessing the virtual currency and how it could have an influence on the crypto market. One of the topics discussed around it is related to regulations and how they could affect the entire project. In a recent report released by Circle Research, they inform that the ambitious mission of Libra poses potential threats to data privacy rights.
Facebook’s Libra Project Could Be Affected By Regulations
The new report released by Circle Research explains that there are some countries that may view the digital asset as a rival to their fiat currency, which is something that central banks would not accept. If Libra is really able to compete against fiat currencies, that means that monetary policy conducted by central banks would not be effective at all or they would lose the power to have an efficient monetary policy.
Although the whitepaper released about Libra says that Libra is meant to be pseudonymous, they inform that under specific circumstances, the virtual currency could be affecting users’ privacy.
There are several regulatory agencies around the world that have already shared their opinion about the Libra cryptocurrency project. For example, the Governor of the Bank of England (BoE), Mark Carney, said that he is open mind about Facebook’s Libra project but not open doors.
At the same time, France has decided to create a new task force among the G7 group to control virtual currencies and be sure that they comply with the necessary regulations.
Circle Research wrote in the report:
“Libra’s ambitious mission to become a leading payments service and financial infrastructure provider backed by a small group of highly influential companies poses potential threats to data privacy rights, central bank authority and fiat currencies.”
Facebook’s Libra is a digital currency that is going to have a stable value backed by fiat currencies from different countries, including the British pound, the euro, the US dollar and the Japanese yen. The main goal is to make transactions faster, cheaper and easier for users of Facebook Messenger and also WhatsApp. In order to use it, they would have to download the Calibra wallet.