Facebook will be having a big meeting today, with the global regulators to describe the design and working of the Facebook backed Libra Coins (another cryptocurrency). Although, the European government has already warned the social media giant that this digital currency can affect the financial stability badly.
The meeting will take place on Monday, September 16, in which officials from 26 central banks will attend and question the Libra executive on how they are planning to run things. U.S. Federal Reserve and the Bank of England are also going to be the part of this meeting to be held in Basel.
Last month, Fritz Zurbruegg, vice chairman of Swiss National Bank, has already remarked Libra as a very vague project, as the documents provided by the Facebook proposing their public cryptocurrency project are not convinced. Apart from that, the Data protection and privacy authorities in the U.S., U.K., EU, Australia, and Canada also share concern over Libra Coins.
Benoît Coeuré, an economist from the European Central Bank and also the head of the meeting, has already said in the media that getting regulatory approval for Facebook’s Libra will not be easy. The governments have also expressed their strong concerns regarding Libra and all the other cryptocurrencies as they have the potential to destabilize the financial system. Though what they are most afraid of is that Libra (and other digital currency) can weaken the supremacy of government and central banks in their countries.
In response, the representative of Libra has said that the company will clarify all the doubts of the regulators and their cryptocurrency will be launched for the public by 2020. Hope, Libra association is ready to tackle all the heat and questions of regulators. Otherwise, they might have to find a different way to make Libra a public cryptocurrency.