CHANTILLY, France: Global regulators will not let Facebook launch its Libra currency until all their concerns, ranging from money laundering to financial stability, have been addressed and"a prolonged discussion" may be needed first, the man in charge of their response told Reuters.
Regulators fear Libra, which in its original design would let users transfer money using a pseudonym, may be used to launder money or finance terrorism.They also want to know what safeguards Facebook and the other 27 members of the Libra Association have in place to ensure they could withstand a run on reserves and that users' privacy and ownership rights are protected.
"Authorities are not going to let any such projects happen before we have answers to our questions and before we have the right regulatory framework."Cryptocurrencies are subject to patchy rules across the world, with the technology remaining mostly unregulated. Facebook said earlier this week it would not proceed with the launch of Libra until regulatory concerns are addressed.Libra has also raised questions about the role of private companies in the currency world, traditionally the province of the public sector.
"Market discipline is useful but I wouldn't see it as progress to shift monetary sovereignty from governments to private multinationals," he said.
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