Facebook says it will take its time to launch its Libra cryptocurrency. The United States regulatory bodies have concerns that the company intends to fully address. However, the main regulation to do with the Libra cryptocurrency will happen in Switzerland.
The head of the Libra’s digital wallet platform, Calibra, David Marcus, says that they would want regulators to have a say in the cryptocurrency. In a statement, he wrote,
“We know we need to take the time to get this right. And I want to be clear: Facebook will not offer the Libra digital currency until we have fully addressed regulatory concerns and received appropriate approvals.”
Facebook faces a lot of oppositions about its abilities to run and regulate a global cryptocurrency. The United States Senate looks to hold hearings on the Libra cryptocurrency in order to discuss its regulations.
More Libra concerns
America’s president, Donald Trump, also has his own reservation. He posted a tweet on Twitter recently to condemn the currency. According to him, “Unregulated Crypto Assets can facilitate unlawful behaviour, including drug trade and other illegal activity.”
….Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National…
— Donald J. Trump (@realDonaldTrump) July 12, 2019
India’s government also proposes a ban on the cryptocurrency. The Reserve Bank of India had banned all its entities from dealing in cryptocurrencies and virtual coins. Furthermore, users of cryptocurrencies in the country are liable to jail terms.
Other government oppositions are also springing up in other parts of Asia and Europe. Nevertheless, these governments may have to take a relook at their regulations because Facebook intends for Switzerland to regulate the Libra currency.
Marcus explains this in his statement. He says,
“The Libra Association expects that it will be licensed, regulated, and subject to supervisory oversight. Because the Association is headquartered in Geneva, it will be supervised by the Swiss Financial Markets Supervisory Authority.”
Other governments will have a say in the Calibra digital wallet as transmitters according to Facebook.