Following a visit to Switzerland to meet with the financial watchdog, US regulators are still concerned for Facebook’s Libra cryptocurrency project.
August 26, 2019, | AtoZ Markets – Facebook’s decision to launch Libra coin next year has not met with the acceptance from regulatory watchdog from all over the world. Since, Facebook’s announcement to launch Libra coin, the social media platform has not left the news. Till date, the regulator has been very inflexible in allowing Libra project to go ahead.
Moreover, several authorities have expressed their concerns over the power of social media platform has over its user’s data. The launch of Facebook’s Libra coin would be more disastrous.
The European Union antitrust authority is already investigating Libra for its anti-competition strategies. Now various authorities raised its concerns over the potential power that Facebook can have if Libra is launched.
Mark Carney, Governor of Bank of England (BOE) commented that Libra would be subjected to the highest standards of regulations. Also, Fed Reserve Chairman Jerome Powell raised issues like money laundering, consumer protection, and financial stability might arise with the launch of Libra coin.
US congresswomen showed concerns over Libra coin project
US congresswoman Maxine Waters recently in a statement said that after meeting with regulators in Switzerland concerns over Libra have not been resolved. This statement has raised more trouble for the social media giant. Many reports are already suggesting that chances of Facebook going ahead with Libra are very slim.
Congresswomen Maxine Waters said that: “While I appreciate the time that the Swiss government officials took to meet with us, my concerns remain with allowing a large tech company to create a privately controlled, alternative global currency.”
“I look forward to continuing our Congressional delegation, examining these issues, money laundering, and other matters within the Committee’s jurisdiction.”
During a long hearing from US regulators in mid of July, The VP of messaging products at Facebook and co-creator of Libra coin added that Switzerland was a best regulatory fit for the goals of the project.
However, many U.S. lawmakers were not convinced and voiced concerns that Facebook would locate to Switzerland to avoid legal scrutiny in a move of regulatory arbitrage.
Cryptocurrencies will not go away
when Libra coin came out in June, some investors and crypto enthusiasts said it has raised the risks for financial authorities. This forced them to take a more serious look at cryptocurrencies.
Before, Libra has also flickered a broader discussion about the cryptocurrencies among regulators. It is noticed that regulators are now thinking about all digital currencies very seriously. An Israeli businessman, Ido Sadeh Man who is launching a digital currency said that the regulator didn’t care about Bitcoin ten years ago and was under the impression that it would go away by own, but they turned out to be wrong. He also quoted that: “They were all sure that it was going to go away and vanish on its own. That’s not the case anymore.”
Zennon Kapron, founder and director of consultancy firm Kapronasia added that Facebook is backing Libra project and sets up the Calibra wallet would interface with WhatsApp, Facebook’s messenger. Also, already Facebook has a couple of billion people in their network.
Companies like eBay and PayPal are also a part of the Libra coin project and present a huge existence in e-commerce and digital payments. Apart from Bitcoin and other altcoins, that seems to be appealing to a large group of people.
At this stage, it is tough to predict what impact the Libra project would have on the cryptocurrency and financial market, but now, the road ahead for the Libra project looks tough.
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