Facebook’s motto has been to move fast and break things. That battle cry is about to be tested as regulators across the world are being urged to act even faster and prevent the tech firm from developing its Libra cryptocurrency in a ‘regulatory void’.
According to Benoit Coeure, a member of the European Central Bank’s Executive Board, it is ‘just too dangerous’ for tech giants such as Facebook to issue cryptocurrencies without having proper financial regulations in place, Bloomberg reports:
It’s out of the question to allow them to develop in a regulatory void for their financial service activities, because it’s just too dangerous. We have to move more quickly than we’ve been able to do up until now.
Libra has poked the bear
The ECB executive board member also stated that digital currencies will serve a ‘wake-up call’ for regulators. Consequently, this might result in regulatory bodies making improvements in their operations.
While Bitcoin and other cryptocurrencies have been around for years now, Facebook’s plan to launch a digital currency has particularly triggered central bankers, policy makers and regulatory bodies across the world.
In Facebook’s home turf, a U.S. congressional committee last week asked the tech giant to halt the development of its Libra cryptocurrency. Specifically, the House Financial Services Committee cited issues touching on among others national security and monetary policy that needed addressing. The congressional committee also cited Facebook’s troubled past with regards to data privacy as a reason for the urgency. The social media giant’s dominance did not help matters either: