Facebook announced Project Libra white-paper yesterday along with Calibra, the digital wallet meant for transacting Libra. While people are celebrating and congratulating Mark Zuckerberg for this new achievement, various governments have shown oppression towards the highly anticipated project.
U.S. House Financial Services Committee asks To “Pause the Project”
Democratic Republican Maxine Waters, who is on the chair of the House Financial Services Committee, briefly after the Libra white-paper announcement, requested Facebook to pause the development on the project.
“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action,” she said in a statement on Tuesday.
The hearing was called earlier that day by Republican Patric McHenry who also commented on this issue:
“While there is great promise for this new technology in fostering financial inclusion and faster payments, particularly in the developing world, we know there are many open questions as to the scope and scale of the project and how it will conform to our global financial regulatory framework,” he explained adding: “We need to go beyond the rumors and speculations and provide a forum to assess this project and its potential unprecedented impact on the financial system.”
And a senator, also a democrat, Sherrod Brown, expressed a particularly powerful comment on his Twitter account.
It’s like Caitlin Long tweeted that Facebook along with Libra finally will boost the governments willing to finally distribute legitimate regulations for this industry. However, I get the feeling that the U.S. government is acting like they haven’t heard of this project… like, ever! Facebook have been developing this so-called cryptocurrency for about a year, but once they release the white-paper, suddenly they want it to be paused. Maybe that is the reason, because Facebook have been ever so secretive about the development of the project.
All-in-all, Facebook have replied to these questions by saying: “We look forward to responding to lawmakers’ questions as this process moves forward.”
French Finance Minister Doesn’t Want to Allow Libra to Replace Traditional Currencies
In a radio show in France, the French Finance Minister Bruno Le Maire commented that Libra should be allowed to even talk about replacing the traditional currencies.
“It is out of question. It can’t and it must not happen,” said Le Maire in an interview on Europe Radio 1. He explained that a group of Seven central bank governors, who call themselves the guardians of the global monetary system, are preparing a report on Facebook’s project for their July meeting. They are most concerned about privacy, money laundering and terrorism finance.
Moreover, the governor of Bank of England, Mark Carney, also discussed Libra at the European Central Bank’s annual symposium in Portugal.
“Anything that works in this world will become instantly systemic and will have to be subject to the highest standards off regulation,” he stated.
At the same time, he says that “we” need to keep an open mind towards new technology that can facilitate money transfers across the world. They will look at it very closely.
It is clear that central banks across the world are freaking out, because they might lose a significant fraction of their income and operating services in general. This will soon be discussed in the G7 summit, where the top leaders of the world will gather to debate on how to regulate this exact case of project Libra. This is going to be interesting to watch in the upcoming weeks and months, so grab your popcorns and enjoy the show!