Facebook’s blockchain project has been under the works for more than a year. When it was finally revealed however, the whitepaper received mixed reactions from a host of people, ranging from developers to politicians of different countries.
Ari Paul, CIO at BlockTower Capital, tweeted his views on Libra, guessing that there is a 50% chance that it will ever launch. Paul tweeted,
I have no special insights, but my best guess is that Libra is 50/50 to ever launch. There’s dozens of different legislative and regulatory authorities that will explore blocking it. Bitcoin and other permissionless cryptocurrencies win to it launching.
— Ari Paul ⛓️ (@AriDavidPaul) June 19, 2019
The concern expressed by Ari Paul seem legit considering the reactions from U.S. and EU regulatory authorities. According to Bloomberg, French Finance minister Bruno Le Maire commented that people should stop thinking about Libra replacing traditional currencies. He added that Libra becoming a “sovereign currency” was “out of the question.”
Further, Le Maire called on the Group of Seven central bank governors to prepare a report on Facebook’s project for their July meeting. His concerns include privacy, money laundering, and the financing of terrorism.
United States House Financial Services Committee Chairwoman Maxine Waters also issued a statement to halt/pause any and all developments on the project, until and after the Congress and other regulatory bodies have finished reviewing it. Further, the a statement by the Senate Banking Committee said that it had scheduled a hearing to review Libra and examine privacy and other concerns.
Facebook’s Sheryl Sandberg said that the reaction to Libra was only natural and that they were preparing to meet regulators. In an interview with Bloomberg, Sandberg said,
“We’re already meeting with them. We know we have a lot of work to do, but this was an announcement of what we would like to do with a roadmap for people to jump in and help us do it.”
The Libra coin is encountering a lot of skepticism from regulators in the U.S. and E.U. However, the cryptospace is speculating if Libra will be successful and how its existence and/or launch will affect Bitcoin and other currencies. While some speculate that it would be a net positive outcome for Bitcoin, others speculate that it could destroy XRP and Ripple.
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