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  • The lack of explanation of the design behind Facebook Libra has made the Indian government skeptical.
  • European Central Bank’s Benoit Coeure called the Libra project is a “useful wake-up call.”

The Indian government has shown skepticism towards Facebook’s cryptocurrency Libra, as per Bloomberg. Subhash Chandra Garg, secretary of the Department of Economic Affairs under the Indian Ministry of Finance, stated:

“Design of the Facebook currency has not been fully explained. But whatever it is, it would be a private cryptocurrency and that’s not something we have been comfortable with.”

Last week, Benoit Coeure, an executive board member at the European Central Bank, said that the Libra project is a “useful wake-up call.”:

“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.”

Libra, which is going to be launched in 2020, has been approached cautiously by politicians and regulators around the world. Facebook, along with 27 founding partners including Uber and Paypal, aims to “serve the unbanked” and allow for low-fee money transfers globally via Libra.