Jul 17, 2019 18:56 UTC
Jul 17, 2019 at 18:56 UTC
Gita Gopinath Urges For a Closer Regulatory Watch On Libra
Libra, the crypto project of Facebook has hogged almost all of the spotlight in the market, ever since its launch was announced. However, not everyone is too keen on the project, given Facebook’s history of manipulation, breaches, scandals and the general lack of transparency.
Chief economist of the International Monetary Fund (IMF), Gita Gopinath, recently voiced her concerns surrounding Libra to Reuters. She has called on the global regulatory community to keep a closer look on Libra, which is still in its early stages of development.
Given Facebook’s history, its important that the global community be more prudent and prepared, so that they can intervene if they notice anything that does not seem in line with the rules and regulations of the international community.
While admitting that the project does have the potential to boost financial inclusion, Gopinath was also careful to not leave out the real dangers associated with the stablecoin. These include concerns about data privacy, consumer protection, as well as “backdoor dollarization.”
Gopinath is just one of the many international regulators, who have voiced their concerns surrounding Libra. Many have already begun investigating the stablecoin for any foul play. The Japanese have also done their bit on investigating the stablecoin. They recently launched an investigation to study the impact Libra would have on universal monetary policy and financial stability.
Just this month, a hearing took place at the United States House of Representatives Financial Services Committee, on Libra. Facebook’s past behaviour and data privacy scandals emerged as the primary bone of contention.
This is a progressive step towards ensuring that user data security and privacy is given the utmost importance and that there is no avenues left open for Faceboook to get away with any sort of malpractice.