There is a huge hype about Facebook’s cryptocurrency, Libra coin launch.
The main question arises, Are governments and banks threatend by the launch of it?
Libra coin is more of a centralised eco-system which doesn’t actually compete with bitcoin, but it surely could be competing the central banking systems.
The European and US lawmakers are already planning to regulate the coin.
France’s finance minister has stated that cryptocurrency must not become a “sovereign currency” he also has called for G7 banking officials to look into the matter. A German member of the European Parliament said Facebook could become a “shadow bank” and that companies “must not be allowed to operate in a regulatory nirvana when introducing virtual currencies.”
US member of Congress Maxine Waters, chairwoman of the House Financial Services Committee, has asked Facebook to pause the project until Congress and regulators have investigated the matter. Senator Sherrod brown stated “Facebook is already too big and too powerful, and it has used that power to exploit user’s data without protecting their privacy”.
The biggest threat to Libra coin at the moment is coming from government and central banks, because they think, Libra coin could be associated with illegal activities, or that Libra could reduce the power of the banking system.