Facebook’s Libra May Not Get The Green Light As It Has Shaken Up The Central Banking Community

European Think Tank President is with the rest of the world leaders in having high concerns over the privacy for the cryptocurrency like Libra. While he believes it won't go live in 2020, it will spark the creation of Central Bank Digital Currencies (CBDC) all over the world.

Facebook’s Libra, according to the president of a European think tank, might not get approved for its launch next year but it could definitely spur the creation of a different digital global currency.

In June this year, the social media giant first proposed its plan to create a new cryptocurrency called Libra, but since has been facing regulatory scrutiny worldwide. On Wednesday, CEO Mark Zuckerberg testified before the US House Financial Services Committee, but lawmakers aren't satisfied.

Beatrice Weder di Mauro, president of the Centre for Economic Policy Research, believes Libra is unlikely to get the green light.

“What libra has done is … it has shaken up the central banking community,” she said, because a private sector-backed, global digital currency has suddenly become a real possibility. And this is why it is not going to happen, she said, because “the regulators are right now saying we are not going to allow it.”

But what makes it “threatening” to central banks? It is that the stablecoin is promoted as an international currency backed by the world fiat currencies and could be rolled out “very, very quickly.”

As such,

“The probability of something like this happening, either from the private sector or because central banks actually get together and do something … is higher now,”

Weder di Mauro said.

“Central banks would be able to, if they banded together, to issue a global currency themselves,”

she added.

This can show the advantages of an international monetary system with a global currency over the current system where “there is a huge dominance of the dollar.”

Libra has generated a “tremendous amount of new thinking”

Earlier this week, Ravi Menon, managing director of the Monetary Authority of Singapore also said that central banks “need to answer” the challenges posed by Facebook’s faster and more affordable payments network.

About 1.7 billion worldwide are still “unbanked” while according to a study on worker remittance by the World Bank, the global cost of sending as much as $200 remains high at about 7%.

Facebook’s project, Menon says, has generated a “tremendous amount of new thinking” in certain areas.

He continued,

“They are pointing to a correct problem, they are offering a solution,” he said. However, the challenge is to see if similar results can be achieved “within the existing banking framework — which is tried and tested,”

As for the project itself, banks may be forced to stop working with the company if it launches Libra, said ING CEO Ralph Hamers, citing money laundering concerns.

“We can take measures and exit the client, or not accept the client, so those are discussions you would have to have,”

he said.

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.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[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

3,471FansLike
2,795FollowersFollow
4,195FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Kraken Exchange Onboards Swiss Bank InCore to Help Euro Clients Buy Crypto With Fiat

Swiss Bank InCore has just become the first banking institution in the nation to provide banking services to Kraken crypto exchange. The deal, which was...

Bank Of Japan (BoJ) Launches ‘Technical' Study to Experimenting CBDCs

The race to launch a sovereign digital currency is heating up as Japan became the latest country to venture into a central bank digital...

This Top Coin, Being the Worst Performer of 2020, Is A Disappointment to the Crypto Market

The fourth-largest cryptocurrency by market cap is currently trading at $0.176 in green by 1.66%, like the majority of the market. With 8.61% losses In...

Cryptocurrency Payment Processor BitPay Finally Announces Support for SegWit

Bitpay, the crypto payment processing giant, has finally integrated the segregated witness (SegWit) protocol, a second layer scalable solution to make bitcoin processing cheaper....

Crypto Hardware Wallet Ledger: ‘Funds are Safe' After ‘BigSpender' Vulnerability Found

A vulnerability was recently discovered by ZenGo in popular cryptocurrency wallets Ledger, Edge, and BRD. Named BigSpender, the vulnerability could lead to a double-spend...

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