Facebook Crypto Libra Faces Grilling From 26 Central Banks Today

News


Facebook is set to go through another round of extreme questioning as it goes ahead with the plans to launch its controversial cryptocurrency Libra.

The tech giant will face representatives of twenty-six central banks, including the Federal Reserve and the European Central Bank (ECB, in Basel, Switzerland, on Monday. The high-profile interaction would see global regulators dictating their mounting concerns over Libra, a cryptocurrency they see as a threat to financial stability.

ECB’s Benoît Coeuré, who will chair the Libra meeting, assured that the bar for granting the Facebook cryptocurrency a regulator approval in the EU would be “very high.”

Nobody Trusts Facebook

Facebook introduced Libra in July as a proposal to upend the global financial system. The cryptocurrency, as Facebook’s whitepaper read, would become a single unit of account to a pool of world currencies, including the US dollar, Pound, and Euro. It would be launched upon a private blockchain supported by dozens of large, global corporations from across a spectrum of industries, therefore cutting the need of Swift, IBAN to confirm global transactions.

But lawmakers and regulators don’t treat Libra as a revolution. On the contrary, they think the project is attempting to undermine the sovereignty of government and regulatory bodies by acting as a de-facto currency manager. Concerns such as those earlier led a US Senate committee to blast Facebook executive David Marcus in a recent Capitol Hill hearing. Senators slammed the company for even thinking about launching a far-reaching finance project, especially in the wake of its repeated privacy breaches on the social media front.

Libra drew similar reactions from the regulators and lawmakers outside the US. France’s Finance Minister Bruno Le Maire suggested blocking the launch of Facebook cryptocurrency in the European Union. Remittance-rich countries like China and India also vowed to refuse entry to Libra, fearing it would undermine their local payment industry.

On the Basel meeting, Libra representatives said they welcome such conversations with the regulators. They told FT:

“We welcome this engagement and have deliberately designed a long launch runway to have these conversations, educate stakeholders and incorporate their feedback in our design.

Libra Competitors Abound

Mr. Coeuré recognized that central banks need to up their research and development to limit Libra’s foray into the finance space. He called the Facebook cryptocurrency a “wake up call” for banks to make consumer payments faster and cheaper, hinting at the development of central bank digital currencies.

Meanwhile, global central banks have expressed the possibility of issuing a rival cryptocurrency to limit Libra’s exposure. Like Mr. Coeuré, Christine Lagarde, the ECB’s incoming president, have supported central banks creating their digital currencies.

Meanwhile, the People’s Bank of China is reportedly set to launch its digital currency in November. The central bank has denied the reports but admits that its cryptocurrency is ‘almost ready.’

Last modified (UTC): September 16, 2019 8:36 AM



Source link

Infolinks.com, 3210366 , DIRECT rubiconproject.com, 20322, RESELLER, 0bfd66d529a55807 google.com, pub-6373315980741255, RESELLER, f08c47fec0942fa0 google.com, pub-4299156005397946, RESELLER, f08c47fec0942fa0 Adtech.com, 11409, RESELLER appnexus.com, 3251, RESELLER Pubmatic.com, 60809,RESELLER,5d62403b186f2ace Pubmatic.com, 158270, RESELLER,5d62403b186f2ace sovrn.com, 268479, DIRECT, fafdf38b16bf6b2b lijit.com, 268479, DIRECT, fafdf38b16bf6b2b lijit.com, 268479-eb, DIRECT, fafdf38b16bf6b2b aol.com, 6202, RESELLER aol.com, 17744, RESELLER lkqd.net, 295, RESELLER, 59c49fa9598a0117 lkqd.com, 295, RESELLER, 59c49fa9598a0117 Freewheel.tv, 482337, RESELLER Freewheel.tv, 480609, RESELLER appnexus.com, 7666, RESELLER, f5ab79cb980f11d1 rubiconproject.com, 156042, RESELLER, 0bfd66d529a55807 pubmatic.com, 156872, RESELLER, 5d62403b186f2ace Rubiconproject.com, 20848, RESELLER, 0bfd66d529a55807 contextweb.com, 559988, RESELLER, 89ff185a4c4e857c rhythmone.com, 2221906906,DIRECT,a670c89d4a324e47 districtm.io, 101519, RESELLER indexexchange.com, 175407, RESELLER 33across.com, 0010b00002CpYhEAAV, RESELLER, bbea06d9c4d2853c rubiconproject.com, 16414, RESELLER, 0bfd66d529a55807 pubmatic.com, 156423, RESELLER, 5d62403b186f2ace rhythmone.com, 2439829435, RESELLER, a670c89d4a324e47 indexexchange.com, 185506, RESELLER Smartadserver.com,3238,RESELLER contextweb.com,560288,RESELLER,89ff185a4c4e857c pubmatic.com,156439,RESELLER pubmatic.com, 154037,RESELLER rubiconproject.com,16114,RESELLER, 0bfd66d529a55807 openx.com,537149888,RESELLER,6a698e2ec38604c6 sovrn.com, 257611,RESELLER, fafdf38b16bf6b2b appnexus.com,3703,RESELLER,f5ab79cb980f11d1 EMXDGT.com, 68, RESELLER, 1e1d41537f7cad7f rubiconproject.com, 17262, RESELLER, 0bfd66d529a55807 indexexchange.com, 184311, RESELLER gumgum.com,13318,RESELLER,ffdef49475d318a9 adtech.com,12094,RESELLER google.com, pub-5617098146054077, RESELLER, f08c47fec0942fa0 spotx.tv, 74964, RESELLER, 7842df1d2fe2db34 openx.com, 540362347, RESELLER, 6a698e2ec38604c6 advertising.com, 24831, RESELLER appnexus.com, 10736, RESELLER

Leave a Reply

Your email address will not be published. Required fields are marked *

twenty − 2 =