The German central bank chief Jens Wiedmann said in a recent statement to the press that Facebook’s Libra could be “attractive to consumers.”
Although most central banks have been hesitant and sometimes outright dismissive towards Facebook’s planned cryptocurrency, Germany’s central bank chief feels differently.
“There’s no reason to be alarmed,” he told reporters. However, there’s every reason to “be vigilant,” he added. The comments came at a recent G7 meeting. Weidmann also said that Facebook should only go ahead with its plans if it can address all of its regulatory concerns. If Libra manages to deliver on its promises, then Weidmann says that the cryptocurrency will largely be a success.
Prepping For The Future
Last month, France’s central bank governor, Francois Villeroy de Galhau, said that the country plans to create a ‘cryptocurrency task force’ with other G7 nations. Germany would inevitably be a part of this too. With Wiedmann’s comments, it seems clear that not all central bankers are on the same page. Some are more open to Libra than others.
However, the most important step for Facebook will be getting regulatory approval in the United States. The Head of Calibra, David Marcus, was grilled in the House committee this week over the social media giant’s plans to issue its cryptocurrency sometime in 2020. With so many regulatory questions still unanswered, Facebook will have to overcome American regulators’ concerns before expanding the Libra to other nations.
Wiedmann may be open to Libra, but it seems that Facebook will have to negotiate regulatory concerns with individual nations. This could be a time-consuming process, but it’s possible that once approved in the United States, other major economies will be more accepting of the stablecoin.
Do you believe that Facebook will be able to successfully meet regulatory requirements to launch in 2020? Let us know your thoughts below.
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