Libra – which is the name of Facebook (FB)’s upcoming cryptocurrency- has already managed to cause quite a stir among bankers and politicians across the world. Along with the present difficulties with the regulations and the consequences it would bring, the currency is now also dealing with opposition and cautions from international communities. Needless to say that this move has also boosted tech stocks related to cryptocurrency as well
Policymakers Worldwide Speak Against The Crypto-Currency
France was one of the many countries to resist making Libra a sovereign currency. Bruno Le Maire, the Finance Minister of the nation protested vehemently against Libra, claiming that the idea of a private company becoming a state doesn’t sit well. The country further is levying a new tax on the technology giants like Amazon pay, Google, etc which has caused some controversy. Even Jerome Powell, the Chairman of Federal Reserve disputed against the cryptocurrency being anxious about privacy and consumer protection.
Mark Carney, the Governor of Bank of England, also spoke against Libra claiming that it could either succeed or fail, but it would have no scope for improvement and development once it is launched. If successful, it would definitely prove to be a great asset; however, there can be no guarantee that it would be rock solid from the very beginning without which it is bound to fail. These types of scope around currencies demand strict and definite vigorous regulations to be set. The hurdles seem to be big enough to delay the launch of Libra into the market- which has been scheduled for next year.
Tech Giants Ban Together For Crypto?
Uber, Mastercard, Visa, and Facebook came together as an association to oversee the launch of Libra. This is a cryptocurrency different from bitcoin which is aimed to have a stable value without any volatility. It would help the World Bank-claimed 1.7 billion adults to have access to financial institutions and banking services. At the same time, it could help Facebook make big money through its app wallet -Calibra.
Facebook’s executive David Marcus maintained that the company knows of the risks that Libra might pose if proved unsuccessful. Therefore the company requested the help of bankers, lawmakers, and regulators so as to do away with issues of money laundering, terrorist financing, etc.