In line with a recent report by ‘Bloomberg’, the Indian authorities have expressed their concern over the Facebook’s upcoming stablecoin project named ‘Libra’.
The Economic Affairs Secretary at India’s Ministry of Finance named ‘Subhash Garg,’ told Bloomberg within a recent interview that the “design of the Facebook’s currency has not been yet completely explained by the company. However no matter what it is, it’d be a private cryptocurrency and that’s not something we’ve been comfortable with.”
Facebook’s Libra is set to be a ‘stablecoin‘ pegged to a reserve of assets that might supposedly preclude the coin from volatility. Earlier in June, Dovey Wan of Primitive Ventures argued that Libra carries the risks of becoming into a financial monopoly along with the associated restrictive risks. Per Wan, ‘Facebook‘ can simply leverage its large user-base of over 2 Bln users world-wide to quickly achieve economies of scale and the attendant network impact.
The social media giant has made ‘clear‘ that with Libra and its associated Calibra digital wallet, it wished to reach unbanked customers and offer them access to monetary services. However, a ban on Libra in India would simply mean that the country, which is home to the 2nd-largest unbanked population within the world and over 260 Mln ‘Facebook‘ users, ‘misses out‘ once Libra launches within the first half of the next year.
As ‘reported‘ earlier, Facebook has not applied for approval with the central bank of India [RBI] to launch its digital currency within the country, that makes it unavailable in India due to the present ‘ban‘ of blockchain-based currency transactions.
At the same time, Anirudh Rastogi, founder at native tech-focused law firm named ‘Ikigai Law’, recommended that the RBI wouldn’t be concerned about Facebook’s Libra if the project was being employed within a closed P2P [peer-to-peer] protocol.
India is presently the leading remittance-receiving country within the world, with the top remittances amounting to $79 Bln earlier in 2018, as per the ‘World Bank‘. Also in 2018, remittances in India reportedly expanded by over 14%, following a flooding disaster in Kerala that probably boosted the financial help that migrants sent to families.