Libra from Facebook Shakes Cryptocurrency World – Fears Mount If Libra Will Replace FiatJune 22, 2019
The coming of the Libra from Facebook has triggered a necessity for a task force, and a Group of Seven (G7) nations were examining the issues.
Francois Villeroy de Galhau, Governor of French Central Bank, stated that a crypto task force created by the Benoit Coeure, European Central Bank Board member would be looking into regulating cryptocurrency and other problems like money laundering.
Bruno Le Maire, France’s Finance Minister, expressed concerns stating that Libra might replace traditional currencies. The G7 Central Bank governors will be preparing a report about the Facebook project for the scheduled July meeting.
Le Maire stated, “It can’t, and it must not happen.” She further added that “It is out of question’’ that Libra be allowed to “become a sovereign currency.”
While France is open to innovation, it is firm on regulation. In it’s Libra White Paper, Facebook has talked about Calibra, the independent consortium which will govern the cryptocurrency.
Villeroy further opined that the concept of the stable coin should be defined for regulators. Ever since the launch of the Libra has been revealed, regulators have been discussing regulatory concerns, which includes those in the US and the UK.
The G7 consists of the wealthiest and the advanced economies per the IMF. Currently, the IMF houses members from Canada, France, Germany, Italy, Japan, the UK, and the US. France now holds the rolling presidency.
Philip Lowe, the Reserve Bank of Australia chief, stated, “There’s a lot of water under the bridge before Facebook’s proposal becomes something we’re using all the time.”
Lowe also commented that there is a lot of uncertainty behind Libra. Libra appears to be a coin with a lot of scope for mass adoption on the paper; however, in the short run, there is not much of possibility for it to happen.
Lowe further added, “There are a lot of regulatory issues that need to be addressed, and they’ve got to make sure there’s a solid business case.”
Distrust about the token is common among regulators and the developers. The social media platform has already triggered a lot of chain reactions this week.
Lowe further stated, “We already have a very, very efficient electronic payments system that allows anyone of us to make bank payments to another person in five seconds just knowing their mobile phone number.” While crypto-libertarians might not like a centralized feature, but decentralization the Australian chief opines comes with its price.