Most individuals in the crypto space have been following the journey of the Libra coin, Facebook’s recently unveiled cryptocurrency. From month-long rumors to the company unveiling it last month to Binance reportedly entering discussions with Facebook over it, the public has long known about Libra coin. And today, July 2, there is even more news about it. But it’s not good.
More News About the Libra Coin
On Tuesday, July 2, The Guardian reported that Christoper Woolard has warned against the Libra coin. Woolard, who is a senior financial regulator in the United Kingdom, said Facebook’s cryptocurrency will come under close scrutiny. Specifically, Woolard explained that “its size and scale will pose questions for society and government.”
It’s not just about the size or scale, however. Despite Facebook hoping to roll out Libra coin by 2020, Woolard believes there are several issues with the virtual currency. For instance, there are potential issues surrounding consumer protection and financial market stability.
Similar to how size is not the only issue with Libra coin, Woolard is also not the only person warning the market about it. Recently, Mark Carney, the Bank of England governor, addressed the cryptocurrency, saying he wouldn’t allow a network that became a platform for criminals.
Are We Surprised?
The world knows about Facebook, just as it does the cryptocurrency industry. And when you think about how successful the industry has been and how successful Facebook has been in the past (minus all that surrounded the 2016 election), it’s reasonable to think the company’s own cryptocurrency would succeed. Or is it?
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According to Woolard, most technology firms are going to receive criticism when entering the financial industry.
“Historically, this may have been a sector that has lived by the mantra of ‘move fast and break things’, but the issues raised here require deep thought and detail. There is a finite amount of learning through failing fast that can be tolerated when consumers are at risk of harm.”
Takeaway
What do you think? Do you agree that Libra coin is going to face scrutiny? Let us know your thoughts in the comments below!
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