Asian giant Japan has set up a committee to look into the potential of the new Facebook’ s cryptocurrency project, called Libra, especially in the area of banking, finances and its ability to cripple a struggling economy if not properly tackled.
Respected news outlet Reuters reported that the members of the committee comprise of high placed government functionaries including the country’s central bank representative, representative of the ministry of finance and the Financial Services Agency, which is the nation’s top financial regulator.
The meeting will give the top players in the country’s financial sector the opportunity to study the potential of the cryptocurrency, look at the ways to regulate it, if needed, examine its ramifications on fiscal policy, financial consequences, taxes and other possible levies, ahead of the July 17-18 G7 meeting in Chantilly, France.
The Libra project has raised eyebrows the world over, countries, associations, firms, agencies and even the stock exchange have raised a question or two about the potential of the new Libra project. Like France, which has also raised a committee to look into the new crypto project, Japan will have the opportunity to openly discuss the Libra project and examine the Pros and Cons
The French Committee
Just like Japan, France constituted its Libra project committee way back in June. At inception, the governor of the Central Bank, Villeroy de Galhau said that the committee will be chaired by the head of the European Central Bank Benoit Coeure and will be paid staunch attention to the way and manner in which the country can regulate cryptocurrencies, while also blocking all loopholes that may be used as an avenue to launder money by financial marauders in the country.
The French foreign minister at the time openly criticized Libra, stating that if care is not taken, it might topple the fiat money and urged the leaders of the G7 Summit to draw up a report on the project at the upcoming meeting.
He is of the opinion that the leaders of the world should not allow Libra to become a sovereign currency on its own, as it could create massive tension in the market and further polarize the world economy.
The Finance Minister, Coeure is also expected to present a preliminary report on the project at the upcoming G7 meeting later in the month.
Bitcoin Exchange Guide in July reported that the French government is fully in support of the statement credited to the United States President Donald Trump, where he maintained that banks and other entities should be separated.
Trump is of the opinion that if Facebook and others want to become a bank, they have to toll the normal line and submit themselves for regulation, just like other banks in the country.
The United States government has invited Facebook to Congress, to explain explicitly the motive behind the Libra project, and how it plans on moving on with the project without going against financial regulations in the country.