- Libra potential means that “You’ve got to be safe, robust and resilient from day one,” Coeure.
- Digital assets around the world are subjected to different regulations.
Discussions surrounding Libra have just begun even though they seem to be already the peak. According to Reuters Facebook has a task to clear the concerns from global regulators for Libra to launch. Some of these concerns are money laundering, privacy, and financial stability.
Benoit Coeure, the European Central Bank board member who currently chairs the international working group on Libra said an interview during the G7 Group meeting that “prolonged discussions’ are warranted in this case because Facebook global reach demands safety and robustness.
“You’ve got to be safe, robust and resilient from day one,” Coeure stated. “It’s not a learning process: either it works or it doesn’t.”
Regulators are concerned that users on Facebook could send money using a pseudonym hence encouraging money laundering or even finance terrorism. The regulators also want to know if Facebook and the Libra Association have the ability to keep the integrity of the reserves. Besides, will user privacy and ownership rights be protected?
“Down the road we might find that there are gaps or inconsistencies that would require a prolonged discussion by regulators on how to do it differently, He said.
Coeure added:
“Authorities are not going to let any such projects happen before we have answers to our questions and before we have the right regulatory framework.”
Digital assets around the world are subjected to different regulations. There exists not clear guideline to oversee the new technology. Some countries like Malt have set up specific rules while other nations prefer to use the current financial regulations.
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