Economy

G7: digital currencies must be secure and safe

G7: digital currencies must be secure and safe”

EU's financial commissioner Valdis Dombrovskis is one of the main figures wanting to assess whether Libra should be regulated by the European Union if new regulation is required, or whether the stablecoin should be allowed to function, according to a recent article published by The Financial Times. Bertrand Perez, former senior director of payments engineering at PayPal was confirmed at the meeting as Libra's chief operating officer and managing director.

Visa, Stripe and Mastercard received letters earlier this month from Democratic U.S. Senators Sherrod Brown and Brian Schatz that urged the companies to "carefully consider" how they would manage potential risks associated with Libra before proceeding with the project.

As a result, Facebook is facing an intensive worldwide scrutiny of its cryptocurrecny project.

The association recently revealed that 1,500 companies are interested to become a part of the project, of which, only 180 met the requirements and standards of Facebook.

The report, which doesn't specifically name Libra, says that all backers of digital currencies must be legally sound, protect consumers, and make sure that their coins are not used for criminal activity.

Facebook's new sablecoin project is likely to kick off a new round of scrutiny and regulation in the cryptocurrency market. The report, due to be presented to finance ministers at International Monetary Fund's annual meeting this week, did not single out Libra but referred to "global stablecoins" with the potential to "scale rapidly" as posing a range of potential problems.

The Association's 21 remaining members include Facebook, Spotify, Uber and Lyft. "You know you're on to something when so much pressure builds up".

Furthermore, the source states that even if Libra's backers are mindful of the concerns the project may not be get a green signal from regulators.

Facebook could have to prove that its digital currency, Libra, is safe and secure, according to a draft report by the G7. All the Libra Association is reportedly trying to do is making the global financial system more accessible to those it previously overlooked. In my opinion, the companies in question would have withdrawn, for the same reason as PayPal: insufficient visibility on how Libra would actually comply with the compliance and associated reputational risk (such as previously highlighted), and potentially worse (impact on the relationship of these organizations with regulators, for example).

I would not like to strike the initiative for now, but the work of the Libra Association has become much more hard.

Good news certainly appears to be in short supply right now - and it will keep going this way until Facebook can provide answers on the transparency and regulatory front.



Like this

loading...
loading...

Latest


18 October 2019
2 accused in probe of Giuliani associates are due in court
Congressman", who "had also been the beneficiary of approximately $3 million" from America First Action during the 2018 midterms. In the indictment, prosecutors also outline an alleged scheme by Parnas and Fruman to raise $20,000 for a "then-sitting U.S.

18 October 2019
Bomb ‘detonated’ on elementary school playground, students evacuated
Additional tests will be completed on the object found on the playground, but they are not expected to show any unsafe material. Dutton said no children were in the vicinity and he did not immediately know whether the explosion damaged any property.

18 October 2019
Google launches new wireless Pixel Buds
With the Pixel Buds , it can detect the noise level of the environment that you're in, and adjust the phone volume accordingly. Pixel Buds have Google Assistant Integration so Google Assistant pops up when you simply say "Hey Google".

18 October 2019
Conor McGregor and Frankie Edgar call on UFC to make fight
McGregor has also expressed an interest in fighting Ferguson and Justin Gaethje, but he's also said he'd be down to fight Edgar... Edgar, like McGregor, is coming off a defeat in a title fight and the American would be a popular opponent choice among fans.

18 October 2019
Airline ditches 'ladies and gentlemen' in favour of more politically correct term
Air Canada has traditionally greeted its passengers with an introduction that includes the words "ladies and gentlemen". Air Canada has not yet announced when the new gender-neutral greetings will be implemented by on-board staff.

18 October 2019
Riot Games reveals League of Legends digital card game Legends of Runeterra
The goal of the game appears to be getting players to explore the world of League of Legends in a more lore friendly way. Aside from some stellar animation and a plan to launch next year, there is not much else for fans to munch on right now.

18 October 2019
Qatar pledges to end ‘kafala’ employment laws — United Nations labor body
Qatar has had problems with some contractors either paying months too late or not at all. The Council of Ministers has been contacted for confirmation.

18 October 2019
SpaceX seeks approval to put 30,000 additional Starlink satellites
The Us Federal Communications Commission (FCC) and the ITU already gave SpaceX the green light for the 12,000 Starlink satellites. After submitting its request, SpaceX will now have seven years to launch at least one satellite with the intended frequencies.

18 October 2019
Google to start Stadia gaming service 19 November
But there's no telling how long that will take; Stadia Controller owners could be stuck with their USB-C cables for a while. Google says that games will be added to the Pro service "regularly", but they're pretty mum on details at the moment.

18 October 2019
'My Son Did Nothing Wrong,' Biden Defends Son At Democratic Debate
Hunter also promised to not work for any foreign companies if his father is elected president. Hunter Biden said he did not discuss his foreign business dealings with his father.