During the G7 Finance Ministers and Central Bank Governors meeting this year, many participants openly criticized Facebook’s Libra crypto coin and stated that stablecoin along with other financial tools, should not be established by large technology companies and they also are a matter of concern for governments and regulators worldwide. These problems should be resolved prior to the beginning of the project.
This is very similar to Bruno Le Maire’s statement concerning the topic in which he declared that the development of Libra is a major issue as it endangers the sovereignty of counties.
The German Minister of Finance called into question whether or not the company knew about their new coin’s potential influence on the financial sector and its stability as well as specifically discussed issues about data security. Only recently, The United States Federal Trade Commission (FTC) fined Facebook with $5 billion for data security problems.
The counter-terrorism financing and anti-money laundering regulations for these currencies should be extremely strict in order to ensure the security of the customer and stability of financial institutions.
Libra is scheduled to launch next year with over two billion potential customers from Facebook and it’s other social media networks.
Even though during the summit finance ministers agreed upon the inefficiency of international transaction networks, they also noted that currencies such as Libra are dangerous and should be treated with caution.