While the crypto market is undoubtedly excited about Facebook’s unveiling of Libra, the crypto project that has grabbed enormous attention worldwide, there are still some factors that might turn out to be a hurdle for Libra.
Bruno Le Marie, the French Finance Minister spoke on the Radio that Libra can never operate as a sovereign currency. Since the fact that can’t be denied is the major intention of Facebook’s Libra project is to introduce a digital currency for usage on its platforms. Well, as simple as it may sound but this is undoubtedly raising several economic issues. Speaking of which these concerns on its regulations are now clearly up for a debate with Le Marie who has given some stern warnings.
Warnings For Libra
Le Marie has clearly warned the upcoming crypto project Libra that Currency remains the product of sovereign states and not private companies.
He also said:
That Facebook creates its own currency, a transaction instrument, why not,” Le Marie mused. “In contrast, it is out of the question that it becomes a sovereign currency,” he then warned.
Well, when observed carefully it can clearly be seen that the major reason for these warnings is the fact that there is a huge probability for Facebook to disrupt the present day ordeals of the finance world.
HOW?– Well it’s needless to say that the boundaries of Facebook are enormously expanded. And with its reach over more than 2.3 billion users, Facebook’s cryptocurrency can undoubtedly question the bank’s control over the commercial transaction. Not just this but it might intend to question the role of the state in the banking system.