Facebook Libra

Facebook Libra Under Fire From G7 Finance Leaders

Posted Thursday, July 18, 2019 by
Arslan Butt • 1 min read

Close on the heels of the scrutiny by US lawmakers, there’s some more bad news coming in for Facebook Libra, this time from finance leaders of G7 nations. Speaking at a G7 Finance meeting, several finance ministers stressed the need to address all important concerns before Facebook launched its cryptocurrency Libra.

While the Frence Finance Minister Bruno Le Maire talked about how Facebook’s move into cryptocurrencies could potentially jeopardize sovereignty of nations, the German Finance Minister, Olaf Scholz, highlighted data security concerns surrounding Libra.

There are also plans to set up a G7 task force under ECB board member Benoit Coeure to explore potential implications of Facebook Libra and cryptocurrencies in general. Central bankers feel that Facebook should have a banking license if it has plans to make users deposit money, which would enforce strict regulations on the management of Libra.

Central bankers have also raised concerns about the level of anonymity that exists in transacting in cryptocurrencies, and how this goes against the financial sector’s strict KYC requirements.

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