Bundesbank report: Libra plans need to be checked
Home News Bundesbank report: Libra plans need to be checked
Matthias Nemack –
Now, the Deutsche Bundesbank is so clear. Libra, the current month’s report, should be officially under control.
Bundesbank refers to the clear position to the Facebook Coin
Reports to Comments to Facebook Libra from the Executive Board of the Deutsche Bundesbank, there were several times in recent weeks. So it was at times, a danger for the stability of the financial system, you will see the new crypto-currency. With an eye on digital currencies like Litecoin or Ethereum, you saw no reason to be more concerned about. Thus, the estimates were much less negative than, for example, the position of the US President. Donald Trump criticized Libra office of the Facebook Wallet Calibra as well as established digital currencies Vehemently. He said, at last, even for extensive regulation in the United States. Also against a ban on Trump should be so lucky, in his words, nothing. Because, for him, only the US Dollar is a “real” currency. A General prohibition of non-calls for the Bundesbank on the subject of Libra. Rigorous testing advocates, however, the German Central Bank, but it is quite. Facebook’s plans for its own currency office payment system to, for example, in WhatsApp integrated, must necessarily be examined.
The national and supranational monetary authorities are addressed
Two of the addressees refers to the Bundesbank with the current statements to Libra. On the one hand, these are Supervisory authorities. In the first place, the Federal financial Supervisory authority (BaFin) is safe here. Finally, the Bundesbank is a German institution. On the other hand, should accept the guardian of the currency – just as the Bundesbank of the topic. At this point, must be from the current month report, published today, the European Central Bank also addressed. The new report addresses risks, such as the “financial stability”, but also the payment security, as well as the “cash value stability”. Another point is the fear of an impending monopoly seems for Facebook, should prevail in the System at a potential several billion users worldwide. The Bundesbank is in good company, because the members of the G7 member States were Concerns expressed. The Bundesbank is, however, quite a need for action with regard to the financial market.
A mix of soon international monetary guardians?
The existing System had to be modernised, not least, the transaction would decrease costs for payments in the future. The Bundesbank’s analysis sees at least a theoretical risk for the Central banks and the global financial system. It is also the fact little that it is still not certain is the extent to which the Stablecoin from the house of Facebook will ever be able to enforce changes. A difference compared to digital Coins such as Bitcoin, Ripple or Monero: Libra is supposed to be tied to the current level of information than Stablecoin to several “real” currencies. This guarantees a stable value. A similar approach, but only with the peg to the US Dollar, followed for a few month, the US Bank JP Morgan. You had to decide for the introduction of the JPM Coin. Interesting will be whether Facebook can dispel these international concerns in the coming weeks. Or follow really soon, early government intervention that could jeopardize the project?
Featured Image: From bonoc | Shutterstock.com