Much uncertainty has followed Facebook’s announcement of its crypto initiative Libra. Indeed, the UK finance minister Philip Hammond has been recorded saying that he wishes only for the regulators to have a say as to how the new plan of the social media giant will fit in with the regulatory framework of the country.
He goes on to say that he believes it would be better for all if solely the regulatory authorities took up the task and left the politicians out of it. Furthermore, he highlighted the British government’s intent to engage with Facebook over the launching of its new crypto currency instead of trying to prohibit or ignore it. In fact, with the proper regulation Philip Hammond believes the introduction of a blockchain-based currency across the social media platforms to be a “positive thing.” Of course, he did also bring up the potential dangers in such a currency as it could well end up an instrument for money laundering and financing terrorism.
The goal of Facebook’s new product seems to be the profitable remittance market and sure enough with its more than 2 billion users worldwide it would dig into it quite successfully.
However, besides the British government, regulators and politicians around the world express concerns over Libra and its potential massive impact on the booming crypto economy which is already proving to be quite hard to regulate properly.
Across the ocean, US president Donald Trump demanded in an angry tweet directed towards Facebook and Bitcoin that the Silicon Valley company apply for a banking license if it wishes to provide such financial services. This sentiment is echoed in a bill that is reportedly being drafted which aims at keeping big tech companies well away from financial services.