India’s Finance Minister: The RBI is extremely cautious about Libra

• The challenges due to the rise of stablecoin digital currencies have been reiterated by most countries.
• Facebook in a bid to achieve agility for Libra is considering having multiple stablecoin assets to back the project.

The Finance Minister of India Nirmala Sitharaman while speaking to reporters during the recently held 2019 Annual Meetings of the International Monetary Fund and the World Bank in Washington, D.C. said that India is extremely cautious regarding the proposed Facebook’s crypto Libra.

“On our side, the Reserve Bank Governor spoke about it during our turn to intervene. I got the sense that many countries were cautioning on rushing into this […]. Countries will have to show extreme caution much before anything is said or moved on this,” Sitharaman told the reporters at the meeting.

Sitharaman said that other nations at the meeting were also very cautious about the project. The speeches regarding Libra were handled with utmost care but challenges regarding Libra-like digital assets were mentioned across the board.

Facebook has revealed that it is considering having a multitude of stablecoins pegged to the fiat currencies as opposed to backing using the sovereign currencies. This was not the plan from the beginning but Facebook maintains that Libra has to be agile.

Read more:  Facebook’s Libra could be backed with fiat-pegged stablecoins