Will Facebook’s Libra come into use?
Recently some of the representatives of Facebook have informed that they’re developing their own cryptocurrency called Libra. However, the main financial officials from the Group of Seven rich democracies have no doubt that this money must be used only after “serious regulatory and systemic concerns”.
What’s going on?
There was a meeting of G-7 chairmen and financial ministers from USA (Steven Mnuchin) and France (Bruno Le Maire) in July.
During their conversations the heads agreed that cryptocurrencies affiliated to real money also known as stablecoins would need to live up to “the highest standards”. Such a statement addresses Libra.
According to financial experts’ attitude to the issue, finance leaders take the decision in order to avoid the laundering of funds or hazards to the stability of economic and banking services.
The most significant reason why Facebook has recently decided creating its currency which is connected with real money is to make it usable because modern cryptocurrency such as Bitcoin cannot be spent on any items.
Even though the most popular social media platform tries reducing costs of transfers and helping deprived communities, Le Maire doesn’t support it. He supposes that Libra will simplify the financing of terrorism and will be a great opportunity for money laundering.
Even though both of the chairmen completely agree about the theme, final decision hasn’t done yet. Standards for stablecoins will start formulating only after the summit which will take place in August, 24-26. The Group of Seven includes representatives from the most developed European countries such as:
- Great Britain;
- European Union – Donald Tusk (Council President) and Jean-Claude Juncker (Commission President).
Furthermore there will be the 45 president of the U.S. and a Japanese Prime Minister Shinzō Abe. Canada is represented by Justin Trudeau
The host of the meeting is France.
While thinking of solutions leaders of the most developed commonwealths will take into consideration that French Government’s going withdrawing the taxes. Furthermore, it’s mentioned it would put a 3% taxation on technical giants including Google and Facebook.
In summarizing up, it’s essential noticing that if Governmental leaders take serious measures, Libra’s creation’s in danger because it won’t be produced.