Today, we learned from the news coming our way from CNBC that Facebook has met with multinational central bank officials to answer questions about its digital cryptocurrency called ‘Libra’.
As the source claims, Facebook/Libra representatives have been in Basel, Switzerland. They were meeting with 26 global central bank officials, including the US Federal Reserve and the Bank of England.
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Benoit Coeure, a member of the Executive Board of the European Central Bank (ECB), hosted the meeting. He said, ‘As a new technology, stablecoins are largely untested, especially on the scale required to run a global payment system. They give rise to a number of serious risks related to public policy priorities. The bar for regulatory approval will be high.’
As part of expanding its digital payment business, Facebook released a digital cryptocurrency called ‘Libra’ in June. Libra plans to officially come next year. It should provide digital trading and payment services to billions of potential users.
But then, many central banks, finance ministers, legislators, and many privacy protection agencies around the world have questioned Libra and expressed concern. Central bankers, including Federal Reserve Chairman Jerome Powell and European Central Bank President Mario Draghi, have listed a number of issues related to Libra. Those concerns include money laundering, terrorist financing, financial stability, and so on.
However, not only the US and UK central banks keep this cryptocurrency in the spotlight. The French and German central banks also pay ‘special attention’ to Libra. The French Minister of the Economy and Finance warned that they won’t permit Libra in France. At least, this won’t happen in 2020, as Facebook is planning to do.