Libra Coin Wallet Calibra to Face Legal Challenges from its Biggest Target Countries in the World
Calibra wallet, powering the Libra token from Facebook, is set to launch in 2020 according to an announcement from the social media giant. Following the announcement the cryptocurrency communities have been torn between the overall success and failure of the token. Additionally, regulators across the world are buzzing with the what’s and whys of the cryptocurrency with some such as the Bank of England Governor, Mark Carney stating the token will be subject to the “highest standards” around the world.
Calibri Digital Set To Lose Its Largest Market – India
TechCrunch reported on July 19th that Facebook will be losing their largest market in the adoption process of Libra following the proposed cryptocurrencies and digital assets bill in India. The law states that any deal, selling, buying, mining or exchanging cryptocurrency will carry a penalty of 10-year jail term.
The country has a population of over 1.3 billion (and growing) with 200 million unbanked people in the country – the main target for Calibra. India also doubles up as the country with the largest number of Facebook accounts (260 million+) in the world. These regulations pose a great challenge to Libra as Facebook may end up losing their largest market.
Facebook launched its WhatsApp Pay service in India as the only state to have the service. It was seen as a competition stunt to WeChat’s payment service but with the launch of Libra, we wait to see if Facebook will integrate it to its WhatsApp Pay.
Libra Troubles With the U.S. Lawmakers
U.S regulators are making it clear that Libra will be closely monitored given the amount of data Facebook holds and the potential impact the coin can have in the global economy.
In a statement to a crypto news website, a Calibra representative confirmed the wallet will work within the jurisdictions. The statement said,
“The Libra blockchain will be global, but it will be up to custom dial wallet providers to determine where they will and will not operate. Calibra won’t be available in U.S.-sanctioned countries or countries that ban cryptocurrencies.”
Facebook’s Calibra will need to answer to the U.S Senate before any go-ahead is given to launch the platform. The Senate Banking Committee has written to the company asking them to answer a number of questions on Libra. Furthermore a Representative in the House, Maxine Waters, who chairs the House of Representatives’ Financial Services Committee in the U.S. issued a statement to Facebook asking them to halt any development on the platform till they appear before the committee.
The Libra token is by a consortium of 22 global companies with various assets backing the stable coin. Some of the companies partnering with Facebook to launch Libra include Uber, MasterCard, Visa, and PayPal.
China Is a Long Shot for Libra
China, the home to the largest number of unbanked persons does not allow Facebook servers in the country, have banned the launch of ICOs and trading cryptocurrencies in the country. This makes the adoption of Libra almost impossible in the country – signifying yet another big market lost by Libra.
While Libra is facing pressures from the external environment of crypto, the largest competition lies in the industry with Bitcoin (BTC), Ripple (XRP) and Stellar (XLM) some of the few blockchains matching Facebook’s developments in the field.