Facebook could bring down dollar: why Europe vs Libra - WritenAreGiven


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Facebook could bring down dollar: why Europe vs Libra

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France, Germany and Italy are preparing measures to ban the appearance in Europe of the Libra cryptocurrency, developed by Facebook. French Minister of Economics and Finance Bruno Le Mayor said that the sovereignty of Europe is at stake with the Libra issue, since Libra will be tied to a dual-currency basket, and, therefore, 2.5 billion social network users will be able to lead the European Union to financial destabilization.

Facebook could bring down dollar: why Europe vs Libra

French Minister of Economics and Finance Bruno Le Mayor said that Berlin, Paris and Rome are preparing joint measures to ban Europe's cryptocurrency Libra, developed by the American company Facebook, the release of which is scheduled for next year.

“Libra is not welcome in European territory. Our sovereignty is at stake, ”the official said, refusing to disclose the nature of the promised events, the French publication Le Figaro reports.
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Bruno Le Mayor recalled one of the most controversial issues associated with this blockchain currency: Libra will be tied to a dual-currency basket.
“For Facebook, it will be enough to decide what it will have more: euros or dollars to affect the exchange rate of one or another currency. This will affect the efficiency of states and weaken the independence of monetary policy, ”the European politician explained.
He added that he was opposed to interference in the European financial mechanisms of a private commercial company, whose number of users reaches 2.5 billion people, capable of exerting a global influence on monetary policy in Europe.
“Do we want a monetary policy in the hands of a private company such as Facebook?” My answer: obviously not. I am not opposed to creating a public digital currency, in the formation of which hello France is participating, and functioning within the framework of European standards, ”the economist concluded.
Earlier, a member of the board of the European Central Bank, Benoit Köre, stated that the introduction of any cryptocurrency could lead to a breakdown in monetary policy, destabilization of the international financial system or national economies.
“If in a country with a weak banking system the population massively used cryptocurrency for their purchases and savings, a collapse of its value without any bank or state guarantee would have catastrophic consequences,” the specialist pointed out.
He emphasized, however, that in the future it is not against the legalization of cryptocurrencies in the European financial market.
“G7 believes that no global cryptocurrency project should be introduced until the legal and regulatory risks are properly eliminated,” Köre noted, adding that blockchain will make money transfers more convenient than for a billion people around the world.
A week earlier it became known that Visa, MasterCard, Stripe and eBay left the Facebook project to create the Libra Association cryptocurrency. This was reported by CNBC. Visa and MasterCard said they intend to focus on other projects.
“The pressure was strong, and I respect their decision to wait until there is clear regulatory clarity regarding Libra,” said David Marcus, co-founder of Libra. The businessman also noted that it is currently difficult to talk about the fate of cryptocurrency.
“Of course, in the short term this is not very good news, but in a sense it is free,” the top manager summed up.

Visa said it would continue to study the project, and the final decision would be made on the basis of several factors, including whether the Libra Association would comply with all necessary regulatory requirements.

Libra, whose creation is personally supervised by Mark Zuckerberg, also met with strong protest from American politicians - US presidential candidate from Democrats Elizabeth Warren and completely threatened to "destroy" Silicon Valley and all major IT companies, thereby depriving them of absolute power.
According to Zuckerberg, the "destruction" of large companies, whether Facebook, Google or Amazon, will not help solve the accumulated problems and get rid of interference in the elections.
“On the contrary, it [interference] will become more likely, as companies will not be able to coordinate their activities and cooperate,” said the co-founder of Facebook.
As for Senator Warren specifically, the head of Facebook has an algorithm of actions in this regard - if she is elected president, the company will have to initiate a lawsuit, which she is likely to win.
“You will say that it will still suck for us. Yes. I do not want to sue our government. I don’t want to be in such a position when you ... I mean, we care about our country and want to cooperate with the authorities to do good things. But in the end, if someone is trying to explicitly threaten you, then you go to the mat and fight, ”the creator of the social network emphasized.
It is worth adding that the Bank of Russia expects a surge in fraud with the launch of the Telegram and Facebook cryptocurrencies. This was told by the Director of the Department of combating unfair practices of the Central Bank of the Russian Federation Valery Lyakh.
According to him, the regulator expects the appearance of criminal schemes using pseudo-cryptocurrencies, offered under the guise of Gram and Libra.
Lyakh noted that social engineering is actively used in the activities of financial pyramids, reports NSN.
If the older generation is attracted to fraudulent operations using classic schemes, then young people are often offered investments in investment projects. The Central Bank expects a surge in fraud with the advent of cryptocurrencies in Telegram and Facebook, FAN reports.

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