June 28, 2019 | AtoZ Markets - At the recent briefing on the use of AI and Machine learning, Director of the Financial Crimes Enforcement Network (FinCEN) Kenneth Blanco had discussed Facebook Libra potential use in illicit financial activity. Against the background of the events at FinCEN, certain EU banks are to plan instant payments system to adopt for Facebook Libra.
How possible Facebook Libra potential use in money laundering could be?
Massive crypto expansion and evolution of the market causes continuous growth of the number of frauds. As the FinCEN press release from Representative, Emanuel Cleaver II outlines such bad actors“are continuously adapting to find new ways to engage in illegal financial activity.”
While speaking of Facebook Libra potential use among crypto scammer, Clever noted that the social media giant has already shown its inability to identify and impede crypto fraudsters at an acceptable level.
He emphasized the importance of Congress and financial transmitter role to ensure the financial system stability and security.
Director of the FinCEN Blanco in his turn, recalling previous concerns over Facebook’s role in the 2016 US presidential elections stated :
“Before we allow such a giant corporation to begin processing millions to billions of financial transactions, we have to study these issues and ensure we have the tools and guardrails in place to deter terrorists, extremists, and/or enemies from utilizing such a platform to do harm to our nation.”
This FinCEN briefing report comes just a week after the United States Senate committee on banking announced that Facebook will testify before it, concerning the much speculated Libra coin.
EU banks plan instant payments system to prepare for Facebook Libra
According to the latest media reports, the EU banks could have an instantaneous payments system in place by 2020. Facebook Libra stablecoin launch could be one of the factors which could fasten this initiative adoption. Traditionally, financial institutions have been reluctant to change.
Therefore, many countries have been extremely slow to adapt and regulate the financial services industry in a productive manner.
The reports state that real-time payments adoption may accelerate now that Facebook’s Libra stablecoin is shaping up to be a competitor to local banks.
Director general of the European Payments Council (EPC) Etienne Goosse believes, that regardless of Facebook Libra success, there remains competition from technology firms, and banks need to evolve faster.
Goosse points out that major tech firms have a significant advantage over the banking system as they “come with a global solution, under a global brand offering many things that the consumers seem to find wonderful.”
According to the local media, other officials confirmed that 2020 was a credible target, but they also noted that for the system to go across borders the entire eurozone would need to be covered.
The experts believe, to plan instant payments system may not be enough to prevent losing user share in favor of fintech initiatives that are easy to access.
In addition, Facebook can also use its social media and chat platforms to its advantage, including to promote Facebook Libra.
As Atoz Markets reported that England examines Facebook crypto. In his recent interview, Mark Carney, the Governor of the Bank of England expressed his“open mind” on the stablecoin adding, the new Facebook product could face strict regulation.
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