Facebook’s Cryptocurrency Libra Under a Microscope
Last updated on November 1st, 2022 at 03:23 pm
Call us crazy… but one sure sign that cryptocurrency is being taken seriously is the fact that Facebook has announced that they have officially entered the space.
Are you looking for another that Bitcoin and cryptocurrency is being taken seriously?
Regulators from many G7 nations are calling for Facebook to put the breaks on it’s so called Libra Coin.
Some of the most prominent voices who have spoken out in concern for Facebook’s new cryptocurrency, Libra Coin include the governor of the Central Bank of France, Francois Villeroy de Galhau and the Chairwoman of the US House Financial Services Committee, Maxine Waters.
Villeroy de Galhau came out saying that the country is forming a new task force and Waters came out and told Facebook to stop development of the project.
Finance Officials Concerned About Libra
G7, also known as Group of Seven, is a group of the world’s wealthiest advanced economies, as defined by the IMF. At this time, they include Italy, Germany, the UK, the US, Canada, Japan, and of course, France itself.
In fact, the group is currently even chaired by France. This gives Villeroy’s concerns additional weight and he suggested that the newly founded task force’s head should be Benoit Coeure — the European Central Bank’s board member.
Coeure’s job would be to study crypto regulations and find the best ways of addressing and avoiding issues such as money laundering and alike. This move is also in line with concerns that Bruno Le Maire, France’s finance minister, expressed as well.
One of his main concerns is that Libra might end up replacing traditional currencies. He believes that something like that is out of the question and must never be allowed.
Why do think he and all the other major players across the globe feel this way?
In a nutshell, having a fiat currency is a government’s way of maintaining control over it’s citizenry
Here are a couple of articles to help further explain this statement:
15 Fundamental Problems with Fiat Currencies
The chief of the FSB (Financial Stability Board), Randal K. Quarles, also stated that the wide use of cryptocurrencies for retail payments is likely to warrant close scrutiny by authorities. It might be necessary to ensure that they are subject to current regulations.
According to him, digital currencies likely do not pose a risk to financial stability at present. However, due to the lack of international standards, it is likely that there will be areas — gaps — where crypto-assets might fall outside of the scope of regulators’ authority.
What exactly does that mean?
They may not have total control.
This is why finance officials have been working hard to come up with a proper regulatory framework for digital currencies and have doubled their efforts ever since Facebook introduced Libra.
Potential Misuse of Libra
As for Facebook, the company is not alone in its attempts to bring Libra front and forward as a dominant method of payment. Multiple other major players joined its side, including PayPal, Uber, Mastercard, Spotify, eBay, Visa, Vodafone, and others.
Why are these entities jumping on the band wagon?
Because, the reality is that this one venture could be the catalyst necessary to help usher in mass adoption of cryptocurrency.
If the creation of Libra is realized, it will be available to billions of Facebook users, ultimately making it a global currency. As such, it would particularly useful to the unbanked and under banked, as it would provide them access to the global economy.
Of course, this is the best case scenario. There are equally negative possibilities.
It’s been highly publicized that Facebook collects all it’s users personal data and sells it to the highest bidder. Even if you don’t believe that, all you have to do is look at all the ads and recommendations you’re bombarded with.
If you want to ad trackers and use the web securely, consider using Brave Browser.
You can read more about Brave here.
Global Cryptocurrency Regulations
If weren’t already evident that global regulations regarding Bitcoin and cryptocurrency was already on the way, all this uproar regrading Libra has brought it to the forefront.
During the most recent G20 summit in Buenos Aires, it was announced that new recommendations are coming. As a result, many cryptocurrency exchanges have begun taking proactive changes to be compliant.
Read more about these cryptocurrency exchange restrictions here.
These incoming recommendations are supposed to be based on the main concern appears that digital assets are for criminal activities. These illegal activities include funding terrorism, money laundering and the like.
This will no undoubted be furthered by the announcement of Libra. Unlike other cryptocurrencies, Libra is a double edged sword.
One on side, we have a case for mass adoption of crypto… on the flip side, with all the personal data already collected by Facebook, this gives them unprecedented control over a great number of people.
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