Global Policy Makers Are Up in Arms About Facebook’s Libra Coin

Published:

18/06/2019 20:30

EST. Journalist:

By CCN Markets: Facebook is already under fire from regulators less than a day after officially revealing its cryptocurrency whitepaper. Based on three separate talks, it’s clear top government and bank officials from around the world are preparing to regulate Facebook Libra.

Cryptocurrencies like bitcoin transcend national borders, and project Libra is looking to cash in on this edge that no other central bank can lay claim to. Regulators are on high alert as Facebook ambitiously aims to be the first global central bank.

Bank of England Governor Demands High Standards

In Portugal at the ECB’s annual symposium, Bank of England Governor Mark Carney earlier today called on G7 countries to heavily scrutinize the Libra launch. He is cited in Bloomberg as saying:

“Anything that works in this world will become instantly systemic and will have to be subject to the highest standards of regulation. We will look at it very closely and in a coordinated fashion at the level of the G-7, the BIS, the FSB and the IMF. So open mind, but not open door.”

Last year, the governor openly dismissed cryptocurrency but appears to be coming round now as project Libra finally moves forward.

Former FDIC Chair Punts the Idea of a ‘FedCoin’

In an interview with CNBC, Sheila Bair, former chair for the Federal Deposit Insurance Corporation (FDIC), raised some concerns about the Libra launch, saying:

“What are they doing with the money, if I give them some dollars to buy the Libra, they’re kinda being fuzzy about that in their whitepaper…The strength of the collateral is a question I would have about it.”

Facebook has 2.6 billion users worldwide. Those users exchange value in over 100 different currencies. Despite Libra’s claim as a future stablecoin, it’s unclear yet how Facebook will manage investment with its foreign reserves.

Bair later reiterated her idea of a Fed-backed cryptocurrency, however, nothing has come…

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