Central bankers around the world said on Thursday that\nFacebook would find itself dealing with many regulatory questions about its new\ncrypto currency.<\/p>\n\n\n\n
The social network outlined its virtual currency plans,\ncalled Libra, earlier this week, a move that almost provoked a reaction from\nboth politicians and regulators.<\/p>\n\n\n\n
French Finance Minister Bruno Le Maire warned that\nFacebook’s cryptocurrency would become a “sovereign currency” hours\nafter Facebook announced it.<\/p>\n\n\n\n
At the same time, the Senate Banking Committee recently\ncalled on the technology giant to join a hearing on its ambitions to create a\ncrypto currency.<\/p>\n\n\n\n
” I think there\u2019s a lot of water to flow under the\nbridge before Facebook\u2019s proposal becomes something that we\u2019re using all the\ntime,” Reserve Bank of Australia\u2019s Governor Philip Lowe told a news\nconference on Thursday.<\/p>\n\n\n\n
“There are a lot of regulatory issues that need to be\naddressed, and they\u2019ve got to make sure there\u2019s a solid business case.”<\/p>\n\n\n\n
What is the Libra currency?<\/strong><\/p>\n\n\n\n The new Facebook token will take the form of a stable\ncurrency, a digital currency that is asset-backed\u2013 just as other currencies,\nsuch as the dollar – to avoid the fluctuations that appear in most crypto\ncurrencies. In the case of Facebook, the currency is supported by a basket of bank\ndeposits and short-term government securities.<\/p>\n\n\n\n The new currency will be supervised by a wide range of\ncompanies ranging from payment companies such as Visa and Mastercard to\ntechnology giants like eBay and Uber. It is scheduled to be launched in 2020.<\/p>\n\n\n\n Experts said that although Facebook\u2019s crypto project is a\ngood signal for the industry, potentially leading to more adoption, regulation\nmay be a major hurdle to the project.<\/p>\n\n\n\n “It does seem clear that something like this could be\nvery important from a regulatory point of view, Deputy Governor Sam Woods was\nquoted as saying by Reuters news agency.<\/p>\n\n\n\n Mark Carney, the UK’s central bank governor, has already\nsaid earlier this week that the Facebook crypto project should be expected to\nmeet the “highest standards of regulations”.<\/p>\n\n\n\n The Indonesian Central Bank was also reported to have\ncommented on the Facebook token topic on Thursday, saying the company’s plans\nshould be reviewed.<\/p>\n\n\n\n Meanwhile, Federal Reserve Chairman Jerome Powell said on\nWednesday he had spoken to Facebook about Libra’s currency. Powell said the Fed\nwould have “high expectations” for the currency in terms of its\nsafety and whether it was in line with financial laws.<\/p>\n\n\n\n “I have no doubt that there will have been regulatory\ndiscussions or some kind of \u2018pre-approval\u2019 going on behind the scenes, \u201c said\nAndy Bryant, co-head of cryptocurrency exchange activity at bitFlyer.<\/p>\n\n\n\n \u201cOf course, there will be plenty of areas where we can\nexpect that regulators will ask for further clarity – which has evidently\nstarted happening already \u2014 however Facebook\u2019s team will no doubt be fully\nprepared for this. “<\/p>\n\n\n\n The world’s most famous encryption currency, Bitcoin, was\ncreated to take financial institutions out of the picture. This currency faces\na lot of regulatory questions especially because of its use in illegal\ntransactions and speculative trading.<\/p>\n\n\n\n Jeff Sloan, CEO of Global Payments, said that regulatory\ncontrol over Libra will be a welcome sign.<\/p>\n\n\n\n Given that Facebook works with known players such as Visa\nand Mastercard, it has the advantage of having partners with experience in\ndealing with current regulations.<\/p>\n\n\n\n Responding to concerns about regulation, Facebook said it\nlooked forward to addressing policy makers’ questions about its cryptocurrency\nplans.<\/p>\n","protected":false},"excerpt":{"rendered":" Central bankers around the world said on Thursday that Facebook would find itself dealing with many regulatory questions about its new crypto currency. The social network outlined its virtual currency plans, called Libra, earlier this […]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":1249,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,4],"tags":[17,28,27,52,69,36,34,114,126,127,10,58,57,70,47,86,80,46,109,39,85,115],"_links":{"self":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1248"}],"collection":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/comments?post=1248"}],"version-history":[{"count":1,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1248\/revisions"}],"predecessor-version":[{"id":1250,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1248\/revisions\/1250"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media\/1249"}],"wp:attachment":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media?parent=1248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/categories?post=1248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/tags?post=1248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}