Aussie regulators launch inquiry into Facebook's cryptocurrency

Facebook's CEO Mark Zuckerberg arrives at the European Parliament with European Parliament President Antonio Tajani to answer questions about the improper use of millions of users' data by a political consultancy in Brussels Belgium

Facebook's CEO Mark Zuckerberg arrives at the European Parliament with European Parliament President Antonio Tajani to answer questions about the improper use of millions of users' data by a political consultancy in Brussels Belgium

Even so, this prompted a swift response from a number of nations, such as France and Germany, who quite a few months later, stated Libra posed significant risks to the economic technique and backed making a public different.

The proposal seen by Reuters not only asks the European Central Bank to think about a native digital currency but also recommends a unilateral cryptocurrency framework, that bans high-risk projects and tokens.

The watchdog, made up of securities regulators from across the world, including the United States, Europe and Japan, said an assessment of stablecoins found they can potentially offer benefits as well as pose risks.

Stable coins are a type of digital currency which has been joined in value to a stable asset or assets which can range from commodities to real currencies.

ECB board member Benoit Coeure emphasized this approach when he described Libra as "a wake-up call" that triggered a rethink to widen the uptake of the central bank's project for real-time payments in the euro zone, known as TIPS. Purportedly, an official from the ECB has said that such a project would allow customers to use electronic cash, which is directly deposited at the bank and thus eliminating the need for bank accounts or financial intermediaries. But that raises technical challenges, and opposition from banks is likely.

Prior to Facebook's announcement, members of the European Union have largely ignored stablecoins due to their size.

Weil told Web Summit attendees that users will have more wallets than just Calibra, the Libra-specific wallet Facebook is creating, to choose from.

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Canada may be the first to acknowledge that Libra is essentially Facebook's way of launching "new global currency".

Under regulatory pressure, Libra has lost a quarter of its original members, including payments firms Visa and Mastercard.

Per the report, the whole issue came in concern that Facebook's entrance into the financial space could disrupt the entire system, the reason being that it could misstep in handling personal data.

But in recommending an outright ban on risky projects and a move towards a public digital currency it goes further.

While the same cannot be technically said in Australia, ASIC did state discussions are "still at a relatively early stage" though one way or another, Facebook and Libra will need to have its answers ready or risk failing altogether.

"The (executive EU) Commission has been way too ... complacent on the issue so far".

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