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.

48085859286_0ce2805a76_b

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)

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Opinion

Amazon's participation and the skyrocketing value of AI company Anthropic become FTX's biggest hope of repaying the debt?

FTX previously invested $500 million as a lead investor in Anthropic's Series B financing round, so the expected appr...

Blockchain

The essence, risks and new opportunities of exchanges from the perspective of monetary finance

Why do you understand that the exchange must first understand the bank? Where are the new opportunities for the excha...

Opinion

How much selling pressure remains after the hacker account has liquidated 300,000 BNB?

In recent days, with the liquidation of BNB cross-chain bridge hacker Venus account positions, crypto KOLs on the int...

Blockchain

Blockchain data analysis lets you see the counterparties

By analyzing the blockchain data set, we will have a better and clearer understanding of cryptocurrencies. (Image sou...

Blockchain

After FCoin's "incident", key figures from the team responded!

On the evening of February 12, an announcement on the FCoin Exchange regarding "the latest progress of system ma...

Market

Dialogue with Circle CEO How can USDC recover the market lost due to SVB's bankruptcy?

In this interview, Laura Shin and Jeremy Allaire discussed various topics including Coinbase's investment in Circle, ...