Controversy-ridden Libra, the cryptocurrency project under Facebook is all set to answer questions posed by various central banks, from across the world today. News portal, Financial Times reported that Facebook representatives will meet nearly officials from nearly 26 central banks, which will include the Bank of England and the Federal Reserve, in Basel.
As readers may be familiar, Libra has not had an easy time, ever since it announced its ambitious cryptocurrency project. While the project had solid backers such as Visa, Mastercard and Uber, among other giants are all part of the association and have invested $10 million into the project, it faced strong, determined resistance, from the US Congress.
In June this year, Maxine Waters, a leading US House lawmaker had called for Facebook to halt the development of its project Libra. In a statement she had said, “Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data. With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users.”
Coming back to the meeting that is set to take place today, Benoît Coeuré, of the European Central Bank who will chair the meeting, has explicitly warned that “the bar for the regulatory approval will be extremely high.” This statement was made, after a group of EU finance minister in Helsinki, voiced concerns about how Libra and other digital currencies could ‘destabilize the financial system’ and ‘undermine the sovereignty of governments and central banks.’
The news portal quoted a Libra official as saying, that its founders have been invited to answer key questions about the currency’s scope and design. The representative further stated that they welcomed all questions. The company, in a statement said, “In the nearly three months since the intent to launch the Libra network was announced, we have prioritised engagement with regulators and policymakers around the world.”