Policy with criticism of Facebook’s Libra Coin
Home News policy with criticism of Facebook’s Libra Coin
Matthias Nemack –
For some crypto-insiders, it has taken surprisingly long, up to the policy warned, finally, of the dangers of the Facebook currency. But now it is so far.
Conclusion regulation in the political shoulder?
Whilst the IMF recently no risks for the financial system by cryptocurrencies, it was announced at the European Central Bank only a few weeks ago that currencies such as Bitcoin or Ethereum can “be useful Assets. Around the plans of the Social-Media company Facebook critical voices from the political world login now to word. That the platform of founder Zuckerberg will introduce the Libra a globally successful Coin, leads to wrinkles, many politicians to worry about. In particular, the criticism comes, of course, on the part of the leading financial policy-makers. The concerns relate primarily to the fact that Facebook could back up with the new payment system, the Position of a kind of “shadow banking”. In the risk, Libra, more than a crypto-currency – namely, a state currency could be, for example, the French Finance Minister Le Maire a need for action. He is calling on his colleagues in the G7 countries for the July Meeting, a report to formulate.
Guarantee of success due to the large Partner network?
The politician considers that it is currently for sure Libra will get such a high international importance. This is certainly not least due to the fact that, allegedly, almost 100 cooperation partners such as eBay, Uber, or Visa will be part of the upcoming network around the currency. Through these partnerships and the planned safety precautions against the threat of price fluctuations, the Token could be in fact the leading Stablecoin. So Libra could be to a recognised means of payment and thus create something that is managed XRP and the Bitcoin still. Also in the EU Parliament, there were some critical Remarks, with a view to Libra. After all, Facebook can boast more than two billion customers, which belong to the potential group of users. The critics call for, especially the regulatory authorities on the Plan. There is an urgent regulatory measures should be taken to prevent Facebook’s crypto-currency is located in a grey zone.
The “Libra-anxiety attacks” in the banking world?
Not only in Europe, there are concerns. In the United States are increasing, regardless of the political Backgrounds reminders that Facebook “unregulated and uncontrolled” growing and also increasing influence in the financial world. The criticism goes so far that there are calls for a Facebook-hearing before the U.S. house of representatives in this matter. It would be the second coming of sugar mountain. Little surprise: Within the technology world is the endeavor largely on popularity. Libra could set new impulses for the whole of the Fintech industry. A sticking point that is also discussed in the industry itself, is Facebook’s Decision-making authority. Because the in-house Libra Foundation was able to set the terms and conditions of participation and certain Users to exclude. This is for the banking world certainly the lesser of two Evils. You can see more of growing industry to foreign competition. While banks, Bitcoin and co. need not fear to date, could Facebook usher final a digital transformation in payment models and cross-country currencies.
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