Libra Concerns Expressed by German and Thai Officials, Risks Need to be Assessed Before Moving Forward
Ever since Facebook revealed news regarding its involvement in the Libra Association, with a total of 28 founding members working towards the stablecoin, Libra, many leaders have since expressed concern. This is primarily a result of Facebook’s former scandal, in which they were found guilty of compromising users’ private information.
So far, we’ve seen a number of leaders share their viewpoint and today, the first comes from Jens Weidmann, a policymaker from the European Central Bank.
According to Weidmann, “there’s no reason to be alarmed,” by the stablecoin reports Reuters. This was shared at a conference held during the G7 finance ministers and central bankers. However, the policy maker did note that “there’s reason to be vigilant”, especially when it comes to the possible risks tied to the likes of Libra.
With German’s viewpoint on one hand, we have Thailand’s on the other. In particular, this comes from the Governor of the Bank of Thailand, Veerathai Santiprabhob reports Finance Magnates.
The governor advises regulators to consider both pros and cons before finalizing on a decision in its regard. Starting with the pros, Santiprabhob deems Libra would open up more opportunities to Thai nationals with respect to the country’s finances.
Bearing this in mind, the governor also seems to have shared a similar sentiment to that of Weidmann, namely that the security risks tied to the coin need to be assessed.
Moving forward, the Bank of Thailand will be monitoring the coin’s to ensure that aspects including verification and authentication are met; not to forget how the stablecoin will be protected against money laundering.
Evidently, both officials seem to be in favor of Libra in the sense that the stablecoin could possibly enhance the market. But, they have since argued that regulators need to be watchful, and highlight any possible risk that might arise.