Earlier, Bitcoin and other cryptocurrencies survived the Congressional grilling on Facebook’s proposed digital currency offering.
An enduring increase at the regulatory environment is being experienced by the cryptocurrencies.
Meanwhile, most of the US government leaders focused their attention to Facebook’s newly proposed cryptocurrency, Libra.
Currently, regulations limit the reach of the Congress on Libra since it is not a bank. The SEC could consider Libra as a security and regulate them.
In a meeting held recently, the board discussed issues related to regulations of payment system and cryptocurrencies.
The board stated Facebook Libra’s coordination with domestic and overseas regulators to ensure the implication are effectively addressed before its launch.
Facebook’s plans of launching Libra, a cryptocurrency advertised as a safe way to exchange money for the millions of people in the emerging world without access to bank accounts, seem unable to function effectively for now.
Facebook claims it would not access any transaction data of Libra users or produce information to target ads. The company’s cryptocurrency effort is by no means charitable.
It doubts Google or other company are doing something similar and drawing Facebook users to another platform.
RBA’s Bias against Fb’s Crypto
Libra has faced many regulatory hurdles from jurisdictional financial regulators.
This year, criticisms were experienced following the announcement of its launch in the second quarter.
Recently, the Payment System Board has discussed Facebook’s proposal for the introduction of a “global cryptocurrency.”
On its meeting, the organization conversed a variety of issues including crypto assets.
The Board also tackled the new Facebook subsidiary offering digital wallet services.
Moreover, the Treasury released an official paper in January in Australia. The article was in quest of opinions regarding the potential benefits and risks of the ICOs and the application of the domestic regulatory framework to ICOs.