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The cryptocurrency of Facebook will be an alternative to the existing banking system

A few days ago, Facebook announced what will be its own cryptocurrency, Libra. And with it also its digital wallet option, Calibra. For Libra to become a reality from next year, Facebook has partnered with 28 major companies, among which there is no traditional banking partner, forming the Libra Association, based in Geneva.

Facebook wants Libra to be an alternative to the existing banking system, and it can work even for those who do not have bank accounts. But in addition to Libra, the number of cryptocurrencies continues to grow.

And in this scenario, from Europe want to take action on the matter to find ways that are possible to force cryptocurrencies to comply with a series of regulations.

A working group to find formulas

In this sense, France, which currently chairs the Group of Seven Nations (G7), will form a working group to find formulas that assure central banks that cryptocurrencies will work under rules that go from what is related to money laundering and money up to the protection of consumers.

Benoit Coeure, a member of the board of the European Central Bank, will be in charge of this working group. As reported by Reuters today, France is not against Facebook creating an instrument for financial transactions. But, it is opposed to that instrument becoming a sovereign currency.

It should be noted that the announcement of the Libra cryptocurrency has not left indifferent sectors of politics and the financial world. Among others, having already warned of the danger of it, as is the case of Chris Hughes, co-founder of Facebook, which appeals to regulators, according to a column in the Financial Times.

In addition, Luis de Guindos, vice president of the ECB, said this week that the new cryptocurrency of Facebook must comply with the regulations on money laundering and consumer protection. Seeing that it is more a competition to other Fintech than to the banks, as collected from ElEconomista.es

Even so, it will be interesting to see how events unfold, and above all, to see if users will adopt the use of Libra in their day to day.


Also published on Medium.

Published inCryptocurrencies

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