ING Chief: Facebook Will Risk Losing Banking Ties If Libra Crypto Coin Launches

CEO of ING thinks Facebook may lose banking relationships around the world if Libra cryptocurrency stablecoin project goes live due to concerns over illegal criminal activity and money laundering risks.

Administrators on the two sides of the Atlantic have communicated second thoughts about the forthcoming of digital currency. It has also been noted that some of them also required suspending its development. Banks are considered to be another voice criticizing the cryptoer. As indicated by reports by Financial Times, Ralph Hamers, the chief executive of ING, firmly accepts that banks would need to cut ties with Facebook if Libra is propelled.

Hamer's announcement is the primary sign where Libra's administrative dangers address the projects lead Facebook as a bankable customer. He clarified that organizations like ING need to monitor the monetary framework to avoid crime.

Along these lines, worries over Libra's potential for unlawful use may bring about a reaction from the banks:

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

He told the Financial Times that banks had raised their concerns regarding Libra being utilized for activities like money laundering. He noticed that banks like ING have a job to be a guardian to the money related framework to safeguard it.

Hamer further says banks would be cautious in having an association with such a project if it doubts the practice of money laundering will exist. All things considered, various banks have said Libra could without much of a stretch be utilized for money laundering. Hamers told the Financial Times explicitly that it would be difficult for Facebook to discover banking accomplices if the Libra is propelled.

A Facebook spokesperson said:

“From the beginning, we’ve said we’re committed to taking the time to get this right. The Libra Association published a white paper to begin a dialogue with the regulators and policymakers who oversee the stability and security of our financial systems. As a member of the Libra Association, we will continue to be a part of this dialogue to ensure that this global financial infrastructure is governed in a way that is reflective of the people it serves. Facebook will not offer Libra through its Calibra wallet until the Association has fully addressed regulators’ concerns and received appropriate approvals.”

Visa, Stripe and Mastercard and a few other outstanding payment operators have left the non-binding letter of intent to join the Libra Association. A portion of these organizations allegedly got letters from the U.S. Congress cautioning them of the potential dangers that could originate from their contribution to Facebook.

Finance Minister's Nirmala Sitharaman stated the fact that India, like many, is standing cautious to accept Facebook's project – Libra. Facebook would not want to put its banking services in risks just because of a project. Facebook has guaranteed to put the launch of Libra at a halt until it has fixed all its regulatory concerns.

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Sritanshu Sinha
Sritanshu Sinha
Sritanshu has a keen interest in emerging technologies, startups and economic anthropology. He holds the view that cryptocurrencies are the best bet humanity has got to push the world towards a borderless economy.

[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

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