Central Bank Executives Of Europe Demand Rapid Regulatory Action For Facebook’s Libra
Facebook’s ambitious and much-talked-about cryptocurrency Libra never fails to keep the crypto community abuzz. Whether it is about its whitepaper release or regulatory concerns, Libra is almost always in the news. The latest update doing the rounds, as reported by Bloomberg on 7th July 2019, is Benoit Coeure, a member of the European Central Bank Executive Board, asking the financial regulators to take quick action to make preparations for Facebook’s Libra token.
On Sunday, in the Aix-en-Provence city of southern France, Coeure stated that allowing the financial services as well as assets to develop in the regulatory void is too dangerous. He also added that financial regulators would’ve to move quicker than they have been till now.
On top of it, digital assets’ development has exposed not only deficiencies in the current regulation but also the failures of banking systems in terms of adopting new technologies, opined Coeure. Continuing further, he said these projects can be thought of as a ‘wake-up call’ for both the public authorities and the regulators because they encourage them to raise questions. It might also make them better the way they do things, Coeure expressed.
As noted earlier, the Libra project of Facebook has been facing rundown from law and policymakers. Mark Carney, the Governor of Bank of England, has stated that the bank approaches Facebook’s cryptocurrency with an open mind though not with an open door.
In addition to that, Markus Ferber who is acting as the European Parliament’s German member, also came forward to voice concerns that in case the regulators fail to keep a watch, the social networking giant might turn into the dark shadow. Bruno Le Maire, French Minister of Economy and Finance, also raised concerns that Libra might become the sovereign currency replacing the conventional ones. Apparently, he has asked a group of 7 governors of the central bank to present a report about Facebook’s blockchain project, with vital areas that cover privacy, terrorism financing, and money laundering.
On the other hand, the US policymakers have also asked for a developmental halt on the Libra project till the raised questions are answered as well as hearings conducted so that lawmakers are in a position to take necessary steps towards user privacy. David Marcus, Libra’s co-creator and Calibra’s leader, will be testifying before Congress in the current month. However, Marcus did publish a Facebook post recently clarifying certain questions and concerns over the project.
