Facebook insists that Libra does not threaten Central banks. Is it really so?

Let’s get this straight. For Central banks, which have been enjoying their own power and ability to print money at its discretion, stablein Libra from Facebook seems like a Trojan horse. In fact, Libra can’t threaten the Central banks, as it takes away their ability to print money. At least, so said the representatives of the giant social network at the meeting of the Libra Association with the Swiss regulators.

Here it is necessary to make a reservation on the fact that the majority of regulators and Central banks around the world is different. However, this does not detract from the rejection of the project from the beginning, when Facebook announced the launch of Libra in June.

Now France, for example, plans to introduce a complete ban on centralized stablon American’s largest social network.

Germany, in turn, has confirmed plans to create its own national digital currency that will work on Bundes-chain. China is not far behind: a country with one of the strongest economies in the world also plans to launch a national (not)cryptocurrency.

Read on: the Ban cryptocurrencies Libra will be a disaster for the United States. Why?

Let’s try to understand whether the “dollar Men” to overshadow the sovereign currency, whether Euro or US dollar and can negatively affect the ability of Central Banks to print money?

It is not excluded. The debate on this topic is still kicking. In Facebook insist that Libra will in no way create value and try to vent Fiat currency. This project is being developed only for the role of more convenient payment network.

Libra backed by Fiat currencies, rather than competes with them

In a series of tweets during the meeting, leading the Executive Director of Libra David Marcus reminded the regulators that the project involves just bound to multiple Vietnam currencies.

This means that national currencies of the countries will participate in the maintenance of viability stablon.

We are not talking about creating some new money that would put into question the credibility of the existing national currencies.

Important to know: the Staff of Facebook has created a cryptocurrency Libra, because they did not fit Bitcoin.

With all this thinking regulators

One of the important arguments from regulators around the world is that Libra [most likely] will be used for illegal activities — from financing terrorism to the trade in prohibited drugs. However, the real concerns are rather directed to the fact that it will deprive Central banks of power and ability to control monetary policy.

Source: 2Биткоина

In the future, cryptocurrency will hamper their ability to introduce control over capital in the face of economic uncertainty and “may very to destabilize the entire global financial system”.

In turn, leading economist in the project Libra Christian Catalini said the largest source of financial news by Bloomberg that such purposes the company did not exist.

The main objective of the project is to create a better payment network and significantly reduce the fee for the end user, and not aim for the law or the status of a new national currency. It is very unlikely that the tokens Libra can ever be used locally, because national currencies are much more properties.

What do you think, can the financial project from Facebook to threaten Central banks of different countries? Are you ready to share more financial data with the social network giant, which has in the past had problems with leakage [or resale] of user data? Share your thoughts in our cryptodata of hontarov.

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