Facebook’ Libra cryptocurrency is about to go through further scrutiny. Also, Facebook may have to riposte some tough questions. In an interview, the officials with the Financial Times said that the representatives of Libra would meet with 26 central banks’ officials. These central banks including the US Federal Reserve and the Bank of England will be meeting in Basel, Switzerland on September 16. Mr. Benoît Coeuré, a French economist and executive board member of the European Central Bank is expected to lead the gathering. In the meeting, Facebook will be questioned over the “scope and design” of digital currency.
As part of the testimony prepared for the July 16 Senate hearing, Mr. David Marcus, head of Calibra stressed that the social networks would not provide virtual funding until it “completely resolves” regulatory concerns and is approved. He also reiterated his privacy commitment. Mr. Marcus said that the Libra Association would not keep personal data outside of the basic transaction information. Also, Facebook will not share the Calibra wallet information with others in the company. Libra, in its response, reiterated its previous stance that it welcomes such contact with politicians and regulators and deliberately set out a long-term timeline to discuss matters and modify their plans on the basis of feedback.
The conversation may not be as expected by the Facebook and Libra teams. Mr. Coeuré specifically warned that Libra must clear “very high” standards, especially EU finance ministers worry that cryptocurrencies like Libra will undermine financial stability and weaken the authority of government banks. Both France and Germany believe that Libra should be blocked in the EU because it will challenge the government’s “monetary sovereignty.” Facebook has used Libra as a way to democratize money. It provides banking services to many buyers that are first-timers and create a format that is independent of any country. However, this is the last part of the concerns of officials and critics. Although Libra is a “stabilized coin,” it should be linked to the conventional currency value, but if it takes off, it may have a significant impact on Facebook and the Libra Association. It may not have ample of choices. Thus, it can only make concessions when it is hoped that the currency will be widely available, or even is it guaranteed.