Since the announcement of Facebook’s Libra Coin, there has been a lot of concerns in the digital currency space. The announcement had an enormous impact on the digital currency markets. Several digital currency proponents gave their opinions about the future impact of Facebook’s cryptocurrency in the crypto space. Many believe the new coin will crush the market, starting with the world’s largest digital currency by market cap – Bitcoin (BTC). However, others believe that Facebook’s digital currency would boost the adoption of Bitcoin (BTC) and other digital currencies further. Nevertheless, there are lots of regulatory concerns around the digital currency, even when it is yet to launch.
President of the European Central Bank Raises Concerns about the Crypto Plan of Facebook – Cryptocurrency News Today
Facebook has been having some regulatory issues with its plan to launch a digital currency. However, Mark Zuckerberg – the founder of Facebook, a social media giant – reaffirmed that the plans of the firm to launch a digital currency will come to pass, no matter how long it takes. The President of the European Central Bank – Mario Draghi – raised a long list of concerns about the digital currency plans of Facebook.
Bitcoin (BTC) Price Today – BTC / USD
Some of the concerns of the ECB president are money laundering, cybersecurity, funding crime, financial instability, tax evasion, privacy, and terrorism financing. In a statement, the President of the European Central Bank said:
“All these concerns are substantial, and they need to be addressed before the regulators can look at this with genuine positive interest.”
The concerns about the digital currency plans of Facebook is echoing across the globe. Central Banks across the globe are at the risk of losing their power if Libra Coin becomes a success. Facebook has a very large user base; over 2.3 billion people are using Facebook and this is a substantial threat for Central Banks.
The Cryptocurrency Plan of Facebook Is Currently On Hold – Cryptocurrency News Today – Cryptocurrency Market Update
At the moment, the plans of Facebook to launch a digital currency is halted, it has been pushed into a corner. The Libra Association is in charge of the Libra project and the association is registered in Switzerland. Nevertheless, to function as a universal currency, it needs to be approved by several regulators across the globe. Recently, the Swiss regulators asked Facebook to submit its design for data protection and privacy. The management of Libra Reserve and the fact that Calibra wallets will require ALM compliances and KYC are the biggest resistances to the Libra project.
Besides the concerns Draghi over Facebook’s coin, he also talked about a probable increase in inflation shortly. There is an impending economic crisis and the ECB President warned the EEA about it. The President said: “the risks in the euro area growth outlook remain tilted to the downside.”
Cryptocurrency Market Update – Cryptocurrency News Today – Bitcoin Price Prediction
Bitcoin (BTC) is the most dominant digital currency in the market with a dominance of 64.5 percent at the time of writing. The digital currency market is currently correcting lower and most coins in the market are in the red. The price of Bitcoin (BTC) is down by about three percent over the past day, leaving BTC USD price at $9,797 at the time of writing. The price of Ethereum is $216 and that of XRP is $0.314.