On June 18th, Facebook announced its idea to make global digital coins. The crypto was known as the Libra. Since then, the system and regulators have increased criticism onto the project for several cases.
Global regulators, finance ministers, and central bankers are concerned that Libra may drift and, in some cases, weaken their jobs.
Given that, investors, critics, and even the watchdogs believe that Facebook’s Libra has suggestively elevated the dangers for all financial authorities.
Thus, they are required to take a serious look at the emerging digital coin industry.
According to an Israeli entrepreneur that introduced the Saga digital coin, “Ten years ago, regulators didn’t care about bitcoin. It was a niche.”
He also added, “They were all sure that it was going to go away and vanish on its own. That’s not the case anymore.”
Facebook has merged with 27 other companies to promote Libra, and the group goes by the name Libra Association.
The Association is independent and a non-profit business.
Facebook’s Goal as Libra Launches
Libra is in Switzerland. The company oversees and is working with the growth and operation of Libra.
However, there is insufficient information about how this organization aims to function once the digital coin is launched.
According to Facebook, the goal of this Libra project is to provide a fast and affordable way for people all over the world to transfer money.
It is also meant to cater to individuals who wants to develop countries who have no access to traditional banking services.
Meanwhile, Kapron indicates that there is a chance that governments will lose their capability in controlling the monetary policy with the appearance of Facebook’s Libra.
Currently, the US dollar has vast power, and the United States government is quite prevailing. It started when oil had was priced in US dollars.
Moreover, the US government manages several banks that can cooperate with the dollar.
Therefore, by using that range of influence, the government can regulate the direction of global economies with the global political set-up.
But Libra coming into the picture, the government control may slip away.