Libra Cryptocurrency From Facebook Faces Global Backlash
The new cryptocurrency introduced by Facebook called Libra currently faces opposition around the world. The Indian government now considers not allowing the currency to trade in its country at all.
India’s Economic Affairs Secretary, Subhash Garg in an interview said, “Design of the Facebook currency has not been fully explained. But whatever it is, it would be a private cryptocurrency and that’s not something we have been comfortable with.”
The Reserve Bank of India had banned all its entities from dealing in cryptocurrencies and virtual coins. However, when the country made this legislation in 2018, individual trading currencies continued to stay legal.
It has now been reported that the government of the third-largest economy in Asia is working on draft laws. These laws will subject users of cryptocurrencies in India to a jail term.
India is not alone in this opposition. Libra also faced criticisms in other countries after its announcement. Politicians in the United States and Europe expressed concerns about the new currency. This stems from Facebook’s bad history of data protection.
France’s Finance Minister, Bruno Le Maire believes that Facebook should not be allowed to create an independent currency. He said Libra would only be fine if it remains limited to transactions.
Meanwhile, the governor of the Bank of England, Mark Carney also expects Libra to be subject to the highest standards of regulation.
Some groups of economic policymakers in America also ask regulators to impose a moratorium on the currency. They say this should be done until Facebook can allay some very valid fears.
To make things even more sketchy for Facebook’s boss, Mark Zuckerberg, his co-founder isn’t on his side. Chris Hughes called the cryptocurrency idea frightening. He also thinks Libra would affect critical powers of central banks around the world. Hughes left Facebook in 2007 after he started the company with Zuckerberg.
In June 2019, Facebook introduced the cryptocurrency called Libra. It will hopefilly launch in the first half of 2020. It said it will launch with 27 partners that include the likes of Uber, Mastercard, eBay and Vodafone. Users will be able to make purchases and send money internationally with it.