European Union governments are increasingly concerned over the chances of disheveling that Facebook’s cryptocurrency has on their financials.
To access the safe use of Libra, the Facebook-driven cryptocurrency, it has been confirmed that global regulators will question Facebook today.
Officials from the central banks of 26 EU countries are set to meet at Basel to access the posing threat and to understand the scope and design of the cryptocurrency. The attendance also includes the US Federal Reserve. Countries including France and Germany have publicly criticized the social media giant’s Libra project, saying it posed risks to EU states’ sovereignty.
Facebook announced the plan for it to introduce the currency in July and since then, the Libra cryptocurrency has received hostility and criticism over its launch. A few days ago, France verbalized its plans of curbing the development of Libra in its country as well its intent to move towards curbing in on ‘European soil’ itself.
Speaking to the media at the meeting of the Organisation for Economic Co-operation and Development, in Paris, overuse of Libra, Finance Minister Bruno Le Maire commented that, “Libra also represents a systemic risk from the moment when you have two billion users. Any breakdown in the functioning of this currency, in the management of its reserves, could create considerable financial disruption”.
Libra is backed by payment firms like Visa and Mastercard and taxi apps Lyft and Uber. It is expected to be launched in 2020. However, the UK and the USA are also not all happy with its launch. While everyone acknowledges that blockchain is an emerging technology, there are apprehensions about money laundering and online theft. Various media sources confirm that the US Congress is also looking into Libra’s potential impact with skepticism. Central bank chiefs, including UK’s Mark Carney, have voiced uncertainty and are not taking the product on face value. Meanwhile, even US President Donald Trump has gone public and tweet that he is “not a fan” of the currency at the moment.