Policy Makers Around The World Concerned About Facebook’s Cryptocurrency Project
- Facebook has just released its blockchain and crypto project called Libra
- Regulatory agencies around the world are already concerns about the impacts it can have
- Facebook has just announced its cryptocurrency project and there are regulators around the world already worried about the future of this crypto and blockchain project. Although the company tries to differentiate from virtual currencies, governments around the world are just getting prepared to regulate Libra.
Regulators Get Prepared To Regulate Libra
Rep. Maxine Waters, the chairwoman of the United States House of Representatives¡ Financial Services Committee, is already requesting the popular social media network to halt the development of its virtual currency. This is according to Brian Fung, tech reporter for CNN, who wrote a series of Tweets explaining this situation.
NEW: The top lawmakers on the House Financial Services Committee are targeting Facebook’s new cryptocurrency, #Libra.
Chairwoman Maxine Waters says it’s another example of Facebook’s “unchecked expansion,” urges execs to testify and calls on FB to stop working on the currency. pic.twitter.com/xOklWsfLdx
— Brian Fung (@b_fung) June 18, 2019
In a statement released, Waters explained:
“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any government forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action.”
Meanwhile, Rep. Patrick McHenry stated that ht is important for policymakers to understand Project Libra and go beyond the current rumors and speculations. The virtual currency created by Facebook could have “unprecedented impact on the global financial system.”
At the European Central Bank’s annual symposium, the Bank of England Governor Mark Carney called on G7 countries in order to scrutinize and follow the developments related to the Libra cryptocurrency. According to Bloomberg, he said that anything that works in the world and becomes systemic will have to be regulated. That means that they remain “open mind but not open door.”
The French Finance Minister Bruno Le Maire is also worried about the development around Libra and Facebook’s blockchain network. He said that it is out of the question that Libra becomes a currency. He mentioned during a conversation with Europe 1 radio that this cannot and it must not happen.
Facebook’s proposal is clearly something that is challenging central banks and their authority in the jurisdictions they operate. Central Banks are currently limited in their power, but Facebook’s coin would operate all around the world rather than just in a single country, which is generating concerns about the implications of another currency that is used for transferring funds, dealing with payments and making daily purchases.
Facebook launched its new cryptocurrency project after being working on it for several months and keeping it as secret as possible. Some early reports suggested that the digital currency they wanted to release could be targetting the Indian remittance market. Apparently, the intention was to use the currency and blockchain platform to deal with remittances.
Libra is going to be used in a wallet called Calibra that is expected to be supported by Facebook Messenger and also WhatsApp. The goal is to launch this application as soon as the next year for users to start using with Libra.
The digital currency is going to be backed by a basket of other fiat currencies and it will be fluctuating according to the movements of the assets that were used to back it.