The Senate hearing on Libra in the US put an indefinite stop to Facebooks’ cryptocurrency plans. Moreover, the Chinese were more apprehensive as they do not have access to Facebook currently. However, not all Central Banks see Libra as a threat.
Reportedly, the President of the German Federal Bank, Jens Weidman, recently addressed a news conference at a meeting of the G7 Finance ministers and Central Bankers. While he advised caution against it, he also perceived the benefits of stablecoins.
He told the media,
“There’s no reason to be alarmed but there’s reason to be vigilant,”
However, Germany’s Finance Minister, Olaf Scholz, shared similar concerns that some of the US senators raised. The Libra Reserve, along with the Libra currency; if it grows too large, it will threaten the power and liquidity of Central banks. He told the media on 16th July 2019,
“The issuance of a currency does not belong in the hands of a private company because it is a core feature of a sovereign state”
David Marcus, the head of the Libra Association, has tried to reassure both the Houses of the US Senate on 16th and 17th of this month on Libra’s plans and Facebooks’ integrity. He also mentioned that Libra was in talks with the working committee of the G7 group.
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G7 includes the following member countries – Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Currently, France is heading the bloc. The G7 group has recognized Libra as a concern for immediate importance. The French official told the media,
“On Libra, we had a very constructive and detailed discussion with a very large and shared consensus on the need for action.” He added, “Concerns (were) expressed by all the participants about the current situation and the need to act quickly,”