Facebook’s decision to launch Libra next year has not yet received the approval of political authorities around the world. Since Facebook announced it was launching its digital currency, the social media platform has not fallen off the agenda. So far, the regulators have shown a rather staunching outlook for allowing Facebook to continue its project. Some officials have voiced concern about the power of users of the social media platform to their data and have claimed that the launch of the digital currency could be catastrophic.
Facebook is thought to gain tremendous power with Libra
As mentioned earlier, the European Union antitrust agency is currently investigating Libra for its anti-competitive strategies. Other officials are also voicing concern about the potential power Facebook could have after Libra is launched. Bank of England Governor Mark Carney, Libra will be subject to the highest regulatory standards, he said. Federal Reserve President Jerome Powell has also raised issues related to money laundering, consumer protection and financial stability that could arise with the launch of Libra.
US congressman Maxine Waters recently said that the meeting with regulators in Switzerland did not address concerns about Libra. This statement means more problems for the social media giant. Many reports show that Facebook’s chances of continuing with Libra are slim.
“The Facebook project has changed the way regulators view cryptocurrencies”
Libra also sparked a broader debate among regulators about cryptocurrencies. It is now clear that the regulators are seriously considering all digital currencies. Ido Sadeh Man, an Israeli businessman who recently released digital currency in an interview with CNBC, said regulators did not care about Bitcoin ten years ago and believed they would automatically disappear from the market. Now he said they’ve come back from these mistakes. Congressman Patrick McHenry said it was not in the hands of the state to “finish” Bitcoin, referring to the power of Bitcoin and cryptocurrencies.
Libra’s impact on the crypto and financial market, in general, is difficult to predict, but for now, it seems to be a difficult road for Facebook.