The Financial Action Task Force (FATF), one of the most important financial regulators in the world, has recently voiced some concerns about Facebook’s Libra project. According to the institution, Libra and other stablecoins could pose several risks if they were to achieve mass adoption, especially when considering money laundering and terrorist financing.
Xiamgmin Liu, the president of the organization, has talked about the future and the dangers that stablecoin projects such as the Libra could pose to society. He affirmed that if stablecoins were very widespread, they could bring in new risks to the table.
According to the president, it is the responsibility of the FATF to prevent any kind of money laundering, especially when it involves new technologies and regulations. Because of this, they would have to take a very close look at these projects to prevent them from creating unnecessary risks.
Ever since the announcement of Libra, the regulators from all over the world seem to have woken up to the “dangers” of cryptocurrencies and stablecoins. While Bitcoin was often seen by many as a speculative asset or a coin used by criminals, corporate projects such as Facebook are seen as real threats to the sovereignty of countries and are receiving scrutiny.
Many authorities from all over the world seem to be concerned with the Libra and its possible uses for money laundering as well as its ability to threat national fiat currencies in countries that are not very stable. Facebook also does not have a good track record when it comes to keeping the data of its clients private, so the situation only gets worse.