Libra Should Not Scare Central Banks, Says Facebook

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Libra, the cryptocurrency that is expected to be launched by Facebook (NASDAQ:FB) in 2020, has proven to be the biggest disruptor in the crypto sphere since June. Policymakers, central bankers, and even politicians have expressed their skepticism with regards to the project.

Relief for Crypto Traders?

The announcement in July created massive disruption in the crypto market, and it was around that time that Bitcoin lost its momentum. That being said, the troubles for Libra are not over yet as fresh fears have been raised whether the Facebook-backed stablecoin is going to undermine the US Dollar and other sovereign currencies or not. Due to this development, Facebook has again been pushed on to the back foot.

Some of the concerns in addition to its effect on traditional fiat currencies include data privacy issues of users and the fact that the token could be used for criminal activities. Considering the fact that the company has been in the middle of a data privacy storm for some time, it is only natural that regulators believe that Libra might end up compromising its users. However, the company has stated that the project is being headed by numerous participating firms, not just Facebook itself.

>> Wells Fargo to Launch USD-Pegged Stablecoin for Internal Settlements

Some of the most important people from the Libra project eventually took to Twitter in order to clear the air about the whole thing. The head economist of the project stated in his tweet, “All of the design of Libra is really around being a complement of fiat [currencies], not a substitute.”

Despite the recent misgivings from regulators in different parts of the world, Facebook has stressed that the cryptocurrency will only be launched after it has been cleared by all relevant regulators all over the world. It also stated, several months ago, that Libra might not actually be launched next year at all.

Featured image: DepositPhotos © Stockcrafter

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