According to a recent report by ‘Bloomberg‘, Facebook recently ‘revealed‘ cryptocurrency project named ‘Libra’ ran into an immediate political opposition within Europe, with incorporating more strict regulations.
Bruno Le Maire – Finance minister of France added that the digital currency referred to as Libra shouldn’t be seen as a replacement for ongoing standard fiat currencies.
“It is out of question’’ that Libra “become a sovereign currency,’’ LeMaire stated within an interview on Europe one radio. “It can’t & it must not happen.”
Le Marie held a meeting with the group of 7 central bank governors, guardians of the international financial system, to prepare a report on Facebook’ project for their upcoming July’s meeting.
Markus Ferber, a German member of the European Parliament, stated that Facebook, with over 2 Bln users, might become a “shadow bank” and the regulators should be on high alert.
Adding further, she said:
“Multinational firms like Facebook should not be allowed to work in a regulative nirvana while introducing digital currencies.”
Facebook has been developing Libra, a stablecoin designed to evade the existing volatility of Bitcoin [BTC] and so be helpful for commerce, in collaboration with a number of leading names within the payments and technology sector, like Visa Inc. and Uber Technologies Inc. The new currency is expected to launch by the first half of next year and is pegged to a basket of established government-backed currencies and securities.
On the other hand, Bitcoin – the base of all ‘cryptocurrencies‘, has attracted alot of attention since after its launch, however it’s still can’t be widely used for the commerce. Facebook while in the meantime, plans to form a new digital wallet that will exist within its Facebook, Messenger as well as WhatsApp services to make it more easy for users to transfer cash to friends, family and businesses via the apps itself.