Why new cypto currency LIBRA in trouble ?
After banning bitcoin in many country, a new cypto currency is in danger. Now this time LIBRA in trouble.
It is facing many problem by other company and by many country too, many peoples start a campen against it.
Firstly we understand that what is Libra ?
So basically Libra is a blockchain digital currency proposed by the American social media company Facebook. It was formally announced on 18 June 2019 and then launch in 2020.It is basically a low cost cross-broader payments currency which was govern by Facebook. It will reduce the expanse of remittances and provide financial services to the un-banked masses.
Actually Libra is a stable coins and different from other cryptocurrencies, such as Bitcoin, because they are pegged to established currencies such as the dollar and euro.
Now Facebook distribute its currency with global currency up to: 50% United States dollar, 18% Euro, 14% Japanese yen, 11% Pound sterling and 7% Singapore dollar.
Facebook teams played a key role in the creation of the Libra association and the Libra Blockchain .
while final decision-making authority rests with the association, Facebook is expected to maintain a leadership role through 2019 .
Major Development
- Now many private company were left the Libra association.
- Recently Paypal left it on 4 October 2019.
- Many other company like EBay, Visa, Mastercard, Mercado pago and Stripe followed on 11 October
- US-Government regulators continue to scrutinise the plans of Libra.
Many company were still associated with Libra, including Lyft and Vodafone, consist mainly of venture capital, telecommunication, block-chain and technology companies as well as nonprofit group.
The main question is that why these company leave Libra project ?
And the answer is; They have specific regulatory requirements dealing with fraud, money laundering and sanctions enforcement. Governments were starting to realise that Libra might make it hard to meet those requirements.
If government started to penalise illegal transaction in future then these payment processors in particular would end up on the hook .
Basically "Facebook appears to want the benefits of engaging in financial activities without the responsibility of being regulated as a financial services company."
country were also saying against to Libra, France and Germany last month pledged to block Libra from operating in Europe and backed the development of a public cryptocurrency instead.
And the answer is; They have specific regulatory requirements dealing with fraud, money laundering and sanctions enforcement. Governments were starting to realise that Libra might make it hard to meet those requirements.
If government started to penalise illegal transaction in future then these payment processors in particular would end up on the hook .
"The G7 believe that no #stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed". From .@Libra_ we agree.— Dante Disparte (@ddisparte) October 14, 2019
Mark Carney: We need to look at the whole financial ecosystem, because everything is interconnected. A central bank’s job is to ensure financial stability. We also want to enable innovation. https://t.co/x5v9fMmFCW #IMFmeetings #NewEcon #fintech pic.twitter.com/AWC3TmJWcO— IMFLive (@IMFLive) October 16, 2019
Basically "Facebook appears to want the benefits of engaging in financial activities without the responsibility of being regulated as a financial services company."
country were also saying against to Libra, France and Germany last month pledged to block Libra from operating in Europe and backed the development of a public cryptocurrency instead.
U.S.Federal Reserve Chairman Jerome Powell suggested the project could not advance before addressing serious privacy money laundering, consumer protection and financial stability concerns.
Now Facebook CEO Mark Zuckerberg should take or make a right decision to lunch its Libra currency.
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