Facebook Libra, European authorities on a war footing

Facebook Libra, European authorities on a war footing

By Roberto D. | CryptoFarm | 22 Jun 2019

Concerns about Facebook's virtual currency are coming from Europe. The US asks for it to be stopped.


Libra's path may be uphill. The cryptocurrency project announced by Facebook, which will be launched in 2020, immediately became a target for regulators, banks and politicians, at European and US level.

France, the current president of the G7, through its Finance Minister Bruno La Maire, asked the seven central banks to set up a working group to produce, by mid-July, a report highlighting the risks of digital currencies and the impacts on the financial system.

One of the main issues to be examined, stressed La Maire in the project presentation letter to the governor of the Bank of France Villeroy de Galhau, is the potential use of cryptocurrencies for money laundering. Maire also stated that it was not against the Facebook initiative, but added that digital currency, precisely because launched by a private company, will have to have clear limits that prevent it from becoming a sovereign currency.

The International Monetary Fund will also be part of the G7 working group, according to reports from the Financial Times.

Reserves and similar doubts have been raised by other important voices in Europe: Bank of England Governor Mark Carney pointed out that if Libra is adopted it will have to be subjected to stringent checks.

The thrust of German MEP Markus Ferber is more sharp, according to which Facebook could become a "shadow bank". In other words, the risk is that the colossus led by Mark Zuckerberg will provide banking services without being subject to regulations. Ferber then added that Facebook's entry into cryptocurrencies is still an opportunity for regulators to get to work to standardize the world of virtual currencies once and for all.

The United States has called for the stop of the Libra cryptocurrency. Maxine Water, head of the House Financial Services Committee, asked to block the development of the cryptocurrency until Congress and the regulatory authorities examined the problem, inviting the Social Network to answer the Congress questions.

Facebook has given its availability, saying it is ready to clarify doubts and respond to requests.

But the development of virtual currency could prove to be more tortuous than expected: the Social Network has already entered into the crosshairs of regulators for questions related to privacy and the use of user data (one above all the Cambridge Analytica scandal). It is therefore normal that the development of its own cryptocurrency, which could revolutionize the world of fintech, is viewed with many reservations and concerns.

Roberto D.
Roberto D.

Born, and still living, in Italy. Passionate about cryptocurrencies since I discovered ethereum in 2016 https://linktr.ee/robertod


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