Crypto newcomer Facebook’s Libra might not be so welcomed after all. The emerging cryptocurrency has been under a lot of criticism since its introduction to the global regulatory sector.
At home, the development and adoption of the crypto are yet to be accepted by the United States government. Just last week the House of the representatives’ finance committee sent an open letter to Facebook’s Mark Zuckerberg and it’s partners calling for immediate suspension of any implementation of the project.
However recently, numerous representatives are calling for swift actions in regards to investigating, monitoring and regulating the development of the digital asset project.
Additionally, the letter did not fail to mention the company’s previous scandals as it implied that the new digital asset could potentially attract hackers.
Most notably, French economist and European Central Bank executive Benoît Cœuré labeled Facebooks latest venture as a “Wake up call” for financial and crypto regulators worldwide.
Furthermore, he argued that developing new asset classes like digital currencies without proper regulations and guidelines is irresponsible to say the least.
He continued by adding that the introduction of cryptocurrencies has unmasked multiple gaps plaguing the current financial laws and regulations.
“All these projects are a rather useful wake-up call for regulators and public authorities, as they encourage us to raise a number of questions and might make us improve the way we do things.”
Despite the unwanted scrutiny and remarks from the global financial regulatory sector, Libra is being backed by more than 20 big-time business. Uber and MasterCard are among the powerful corporation backing the new currency.
David Marcus, co-creator of Libra and head of Calibra firmly believes that the new crypto has the power to help the “unbanked” which is around 1.7 billion people worldwide.
He further reiterated that “The goal of the Libra Association is to reduce transaction costs and expand access to the financial system using blockchain technology “, however financial regulators don’t seem to share the same enthusiasm.