BaFin President wants Libra and regulators to be more creative

• Major members like eBay and MasterCard, among others, have left the project Libra.
• Regulatory parties are not in support of the project due to Facebook’s history with privacy concerns.

Facebook’s Libra stablecoin has been receiving many criticisms lately. BeInCrypto previously reported that some of the major members like eBay and MasterCard, among others, have left the project. On the other hand, many regulatory parties are not in support of the project owing to Facebook’s history with privacy concerns, and other matters. However, many believe that Libra is not going anywhere, despite courting so many controversies.

Felix Hufeld, the president of the Federal Financial Supervisory Authority (BaFin), told CNBC that although Libra and regulators have a similar aim when it comes to digital assets, they’re contradicting each other. He also said that Facebook’s project will not be withdrawn all of a sudden. Hufeld believes that Libra may become the “de facto” currency of today, regulators would find that “unacceptable.”

He further stated that this uncertainty is not “the final word” to him. According to Hufeld, anybody working on the world’s financial system should be more “creative.” This can be achieved either by traditional regulators reinventing finance, or potentially Libra and Facebook. Notably, digital assets, blockchain technology, and the like are in their initial stages of development that the two parties need to help one another.

The Libra and regulators are in communication with each other to “figure out how things are evolving.” Facebook might not disclose anything regarding the project, considering the Federal Reserve might release its own digital currency to compete with it. Hufeld believes Libra is one of the biggest contenders in the game.