Facebook’s Libra Coin Project Will Not to Do Away with Existing Currencies
Libra association says that Facebook cryptocurrency is not being initiated to replace the already established currencies. The Managing Director Bertrand Perez, who was speaking at UN headquarters in Switzerland at a blockchain conference, stated that they are not implementing a monetary policy with Libra.
Perez added that the digital coin would assist in achieving several UN sustainable development goals which include boosting gender equality and eradicating poverty. Libra is also said to benefit blockchain’s bottom line.
It is planned to be a stablecoin that is to be backed by government bonds and a reserve of fiat currencies. The crypto coin is expected to be inaugurated in mid-to-late 2020. However, Mark Zuckerberg, Facebook’s CEO, appeared to advise that the initial timeline is not fixed.
Mr. Perez also stated categorically that Libra is not a threat to existing currencies as the main aim is not to make money with the currency.
From the time Facebook announced their intention of launching a cryptocurrency, they have been faced with a lot of scrutiny from governments and regulators. Many also argue that this coin is not a cryptocurrency.
Until now, what is known currently is very little. People are only speculating from the remarks that were made by the manager. Several governments and regulators are presently concerned about the potential effects this project could possess on the global financial ecosystem and the society at large.
Some of Facebook’s partners have even started backtracking as a result of such fears. The European Central Bank board member and Luxembourgian lawyer, Yves Mersch, stated that Libra could disable the ability of the ECB to provide liquidity to financial institutions in the continent. He claims that it could even undermine the Euro at the same time.
As stated earlier on, it is not possible to determine whether the coin will be initiated on time but what is certain is that arguments will not cease until Libra is inaugurated.