According to recent news, Global regulators will interrogate Facebook shortly regarding its Libra cryptocurrency, even though the EU governments expressed concerns that the digital currency poses a danger to financial stability. As per the Financial Times, Facebook needs to face 26 national banks, inclusive of the US Federal Reserve and the Bank of England, will meet with delegates of Libra in Basel shortly, the FT stated, referring to authorities.
Moreover, Facebook has pitched Libra as an approach to democratize money, providing banking for first-timers, and making a format that is independent of any one nation. However, it is the last part that has worried the authorities. Facebook opined that it invites open exchange with controllers. In a recent discussion, Libra told Financial Times –
“In the nearly three months since the intent to launch the Libra network was announced, we have prioritized engagement with regulators and policymakers around the world, 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.”
Besides, the meeting will reportedly happen among Libra and the Committee on Payments and the Bank of International Settlement’s forum, Market Infrastructure. Facebook authorities will be questioned about the design and scope of the cryptocurrency, and a report will be filed for G7 finance minister in October.
Regardless, Libra‘s founders have additionally been asked to respond critical questions regarding the currency, Financial Times said. Further, Nations inclusive of France and Germany have publicly condemned the social media giant’s Libra venture, saying it presented dangers to EU states Sovereignty.
The Libra Association, an alliance of 28 members set up together by Facebook to help the cryptocurrency to realization, includes Uber, Visa, Mastercard, Spotify, and the subsidiary Calibra, among few. Moreover, the members all made a non-restricting guarantee to invest at a minimum of 10 million dollars.
The forthcoming meeting came later when French Finance Minister Bruno Le Maire cautioned that France would not approve the development of cryptocurrency Libra on European soil. He opined that the digital currency poses a risk to the fiscal power of governments and causes issues on illegal tax avoidance, terrorism financing, and market strength. Further, He additionally voiced concerns that Libra can help individuals to abandon national currencies during an emergency, even more complicating the efforts of the government to deal with the economy.
Nevertheless, the governments have voiced strong concerns over Libra and other digital currencies that are seen fit for destabilizing the financial system and lessen the power of governments and central banks. Even though it faces issues, the head of the Libra Association stated that Libra cryptocurrency would be released at the end of 2020.