Two months back, Facebook introduces its own cryptocurrency at global level named as Libra. Meanwhile, regulators loaded a lot of criticism on Facebook’s digital currency project. Central bankers, finance ministers and global privacy regulators stated concerns with the proposed Libra cryptocurrency because it could at least in theory, severely change or even destabilize their jobs. Thus investors, regulators themselves and crypto enthusiasts said that Libra upheld the stakes for fiscal authorities, emphasizing them to take even more serious concerns about cryptocurrencies.
An Israeli tycoon, Ido Sadeh Man who is launching a cryptocurrency ‘Saga,’ said in an interview that regulators did not care about bitcoin before ten years. It was a niche, and they were all assured that it was going to get away and vanish on its own.
In June, Facebook launched its digital currency Libra in alliance with twenty-seven other companies. The cryptocurrency would oversee by a sovereign non-profit Switzerland based called the Libra Association, although it is huge unclear information about how that firm would operate. Facebook says that the goal of the project is to provide a fast, low-cost way for people around the globe to transfer currency. Especially for those people who do not have an approach to common banking services.
Instant Reaction from the International Regulators
In the past, the United States, as well as international regulators measured in their reaction towards digital currencies such as bitcoin. They have been fast to raise concerns with Libra. Facebook debuted the Libra project on the same day. Mark Carney, Governor of Bank of England, said that it would be a matter to the peak level of regulation. A few weeks later, Jerome Powell, Chairman of Federal Reserve, followed suit listing concerns including financial stability, consumer protection, privacy and money laundering. Since then, FTC Commissioner Rohit Chopra, President of European Central Bank Mario Draghi and U.S. Treasury Secretary Steven Mnuchin raised the same worries.
Ties of Facebook
According to the director and founder of consultancy firm Kapronasia, Zennon Kapron, regulators have concerns on a number of fronts, all of them tied to potential of Libra for going mainstream. Kapron told that firstly, Facebook is behind it and thus Facebook sets up the Calibra wallet they are talking about. Moreover, that would apparently interface with Facebook Messenger, WhatsApp. Previously, they have a huge number of people in their network.
Furthermore, Kapron said that firms such as PayPal and eBay, that associated with the Libra Association also has a marvelous presence in digital payments and e-commerce.