Facebook cryptocurrency Libra or facing review by European authorities

According to Coindesk's June 18 report, Facebook's information about its cryptocurrency, Libra, was immediately exposed by European political circles.

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Image source: Visulhunt

According to Bloomberg News, French Finance Minister Bruno Le Maire and German Congressman Markus Ferber called on governments to conduct a regulatory review of the social networking Facebook blockchain project.

Faber warned that Facebook, with more than 2 billion users, could become a "shadow bank," and he said that multinational companies such as Facebook must not allow them to operate in a deregulated environment when introducing virtual currency. This sounded the alarm for further review by regulators.

Lemmel also expressed the same opinion in an interview with Radio 1, and he called on the central bank governor of the Group of Seven (G7) to prepare a report on the Facebook project for the July meeting.

He is worried that Libra may gradually replace traditional currency. The recent flashing rhetoric of Italian Prime Minister Matteo Salvini on the issue of short-term government bonds mini-BOT has also raised similar concerns. Some analysts predict that this proposed national currency will shake the foundation of the EU. Lemer said:

“It’s impossible to make Libra a sovereign currency, and it must not happen.”

After months of rumors and speculation, Facebook officially announced on Tuesday that it is "building a financial ecosystem that can access and empower billions of people." Libra is a stable currency designed to counter the volatility of cryptocurrencies and is therefore promising in everyday business. In the development of Facebook, it has established partnerships with some well-known companies in the payment and technology fields such as Visa, Uber and Coinbase.

The currency is expected to be launched in 2020 and will be linked to a basket of government-backed currencies and securities designed to limit inflation and maintain liquidity. The Libra Association will be responsible for controlling the currency and purposefully destroying or casting tokens to respond to changes in market demand.

Facebook subsidiary Calibra plans to have a digital wallet built into its Facebook Messenger and WhatsApp service to help people transfer money to friends, family and businesses through these apps.

Original: https: //www.coindesk.com/facebooks-new-crypto-faces-scrutiny-from-european-authorities Author: Daniel Kuhn compiled: Libert Manuscripts (translated): Babbitt Information (http: // v1. 8btc.com/429962)