Ever since Facebook, (the tech giant that taught the world how not to do privacy), unveiled Libra, it has amassed both positive and negative sentiment of both regulators and financial players across the globe. The idea of a coin that promises to “create a simple global currency” was immediately shot down by regulators in the United States itself, let alone regulators overseas.
There are a number of factors that have forced the regulators to pull their guards up, which includes the firm’s past handling of users data and its security problems. Regulators also have other concerns surrounding the launch of Libra in 2020 such as money laundering and terrorist financing, all of which hasn’t been addressed by the social media mogul yet. This leads to the question: after a firm that miserably failed to protect its users’ data and privacy, thereby having a major impact on the Presidential campaign, how could the same private firm whose main drive is to make more profits purport the launch of its own currency?
After all the blows and clashes, the tech giant that’s trying to go the WeChat way has gained the benefit of the doubt from Bank of England’s Governor, Mark Carney. According to Yahoo Finance, Carney stated that Facebook’s cryptocurrency “could substantially improve financial inclusion and dramatically lower the cost of domestic and cross-border payment,” further adding that the cryptocurrency had the potential to become “systematically important” to the global finance.
The warm attitude towards the Libra, however, failed to brush off the concerns around the potential risks it carries. Carney emphasized that they were welcoming the social networking firm’s idea “with an open mind but not an open door.”
The governor suggested that Facebook had to cover all the regulatory grounds before the launch of the cryptocurrency as this case was not the same as that of Facebook’s launch itself. He further stated the cryptocurrency should have the “highest standards of prudential regulation and consumer protection,” adding that it should also address concerns of money laundering and data protection.
The governor remarked,
“Libra must also be a pro-competitive, open platform that new users can join on equal terms. In addition, authorities will need to consider carefully the implications of Libra for monetary and financial stability. Our citizens deserve no less.”
In the meantime, in a different part of the world, another regulator suggested that Facebook’s Libra launch was in it for the long haul. According to a report by Bloomberg, the governor of Reserve Bank of Australia, Philip Lowe stated,
“There’s a lot of water under the bridge before Facebook’s proposal becomes something we’re using all the time […] 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, so we’ve got to be careful before we jump to conclusions.”
- Source: First Appeared Here
- Published Time: 2019-06-21 12:15:50
The views and opinions expressed in the article Facebook’s Libra concept sees a half-hearted welcome from Bank of England’s Governor do not reflect that of 48coins, nor of its originally published source. Article does not constitute financial advice. Kindly proceed with caution and always do your own research.
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