ZURICH – Following a recent announcement by Facebook regarding its cryptocurrency known as Libra, the move has been met with a sombre response from a number of stakeholders.
According to reports in Europe, bankers have suggested that the giant social networking company to shelve its plans to launch the crypto.
On the other hand, some bankers have not given a positive reaction with some saying the cryptocurrency project is not ruffling any feathers when it comes to regulations.
According to Coin Desk, Thomas Moser who is an alternate member of the governing board at the Swiss National Bank said he is relaxed with Facebook’s development.
“I think it’s an interesting development and I’m pretty relaxed about it,” he said at the Crypto Valley Conference in Zug, Switzerland.
The website reports that the comments will likely be welcome at Facebook, which has set up the cryptocurrency’s guiding Libra Association in the country, but it is facing calls for regulatory scrutiny over the effort in other jurisdictions.
In addition, head of market and payment system oversight at Italy’s central bank Domenico Gammaldi, he is of the view that more information is needed on the Libra project, saying a mere white paper is insufficient.
“I’ve read more than 200 pages of comments, and it’s very strange for me to give a personal opinion on 12 pages in the white paper,” Gammaldi said.
Moreover, France has also moved to establish a task force within the Group of Seven nations to examine the issues raised by Libra.
It is reported that Governor of the French central bank, Francois Villeroy de Galhau, stated last week that the task force would look at how cryptocurrencies are regulated to avoid money laundering among other issues.
Maxine Waters, chair of the House committee has also called on Facebook to suspend development of the project several times last week and the hearing is scheduled for July 17.
“We’ve got to protect our consumers. We just can’t allow (Facebook) to go to Switzerland with all of its associates and begin to compete with the dollar,” Waters said.
Meanwhile, the United Kingdom’s Financial Conduct Authority (FCA) has echoed the sentiments of a number of role players calling for more information on Facebook’s plans for crypto payments.