Libra to Be Blocked by EU Finance Ministers
EU finance ministers have come to an agreement that Libra, the Facebook crypto coin shouldn’t be permitted in EU until all the potential risks are acknowledged and addressed.
Facebook came up with its Libra project in June, all main financial regulators have stated concern about the potential impact of the currency on the world financial system. The discomfort steams from the huge customer base of Facebook – which is presently over 2 billion.
The European Central Bank along with France and Germany has criticized this venture- and it has now been confirmed by the latest revelation of the finance ministers of the Block.
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After a meeting was conducted by the EU finance ministers, a joint statement was released which stated that they will consider common European regulations for crypto related assets and for virtual coins like Libra, which will also be a part of this worldly regulation.
The ministers applauded the European Central Bank for their brilliant work on a public virtual currency, which is an alternative to emerging coin Libra.
After the worldly regulatory pressure, around 1/4th of the companies primarily backing Libra have now withdrawn from the project, MasterCard and VISA included.
PayPal also stated that it is evaluating its collaboration with Libra because it requires having positive relations with the regulators who have limitations about the project.
In a statement filed by the EU finance ministers, it was mentioned that no worldly stable coin should start operation in EU till the lawful, regulatory and oversight challenges have been discovered and addressed.
Critics of the venture also mentioned concern about money laundering and impact which Libra will have on the stability of the fiat currencies, especially in the developed and developing nations.
The governor of the Bank of England has alerted that Libra could create a systemic effect on the world economy. So, Libra has been witnessing a lot of problems since its release but the coin continues to enjoy both good fame and bad fame among people.
In the coming time, it will be exciting to see whether it fights all the hurdles and emerges as the next big thing or not.