íàçâàíèå

EU Antitrust Regulators Scrutinise Facebook’s “Cryptocurrency” Project

Facebook’s Libra project has been questioned by European Union anti-trust regulators. They are concerned about the project, popularly referred to as a cryptocurrency, restricting competition.

Libra has been subject to immense scrutiny already from global policy and law makers. In fact, the company recently admitted that the regulatory pressure might force it to postpone or even cancel the project altogether.

Facebook’s “Cryptocurrency” Ambitions Draw Yet More Regulatory Attention

Almost as soon as the social networking giant Facebook announced its plans to move into the cryptocurrency space with Libra, the idea was met with hostility from global regulators.

Policy makers from France, the EU, the US, and elsewhere cited a hefty list of concerns about the cryptocurrency-like project. Even United States President Donald Trump weighed in on the subject, stating that the company would have to apply for licences if it wanted to offer banking services, just like any other financial institution does. He also stated that Libra would never pose a challenge to the might of the US dollar:

According to a report today in Bloomberg Law, the list of regulators with doubts about the firm’s cryptocurrency ambitions continues to grow. It states that antitrust regulators in the EU are concerned that the digital currency may stifle competition. The report cites a “document seen by Bloomberg” as evidence.

The document appears to be a questionnaire that has been sent to groups associated with Libra at this early stage of its development. Such a document is a standard part of enquiries made by the European Commission.

The questionnaire seeks to measure how the Libra cryptocurrency-like system may shutout rivals. The European Commission antitrust regulators believe that the integration of the digital currency with applications such as WhatsApp and Messenger could make it all but impossible for competing systems to find traction in the market.

The ever-growing list of regulatory concerns against Libra could well jeopardise the project’s proposed 2020 launch date. In fact, in a document submitted to the US Securities and Exchange Commission, the company admitted that the scrutiny might force the California-based social media company to discard the cryptocurrency-like project altogether.

Despite the fact that Libra is being touted as a cryptocurrency, most Bitcoin proponents do not see it as competition. Libra will not be priced by market forces like Bitcoin is. Rather, it will be backed by a basket of national currencies. It therefore does not represent the same robust monetary policy that has made BTC a favourite of economists from the Austrian school of thought.

In fact, most analysts seem to agree that Libra may well facilitate a mass on boarding of users to Bitcoin and other decentralised digital assets. The theory goes that it will be much easier to get exposure to BTC by first buying Libra and exchanging it. This may well prove more attractive to people after they have familiarised themselves with Libra.

Related Reading: Bitwise Claims Facebooks Libra Propelled Bitcoin 3 Years Ahead, But is This True?


Featured Image from Shutterstock.

The post EU Antitrust Regulators Scrutinise Facebook’s “Cryptocurrency” Project appeared first on NewsBTC.

20.08.2019 / 15:30 19
Facebook Crypto Plans Floundering as Global Regulatory Pressure Mounts Facebook Crypto Plans Floundering as
Following a couple of weeks of outright lambasting by US lawmakers, Facebooks Libra crypto project appears to be cracking at the seams before it even
UK Information Commissioner Has Concerns About Facebook’s “Cryptocurrency” Project UK Information Commissioner Has
The UK information commissioner has expressed concerns over Facebook’s cryptocurrency-like project, Libra. Elizabeth Denham says that the San
Facebook Admits Libra Crypto Project May Never Launch Facebook Admits Libra Crypto Project
Since its inception, Facebooks foray into crypto has been under fire from all sides. The reaction to Libra was unsurprising really given the social
Facebook’s Libra Is a Serious Privacy and National Security Concern Facebook’s Libra Is a Serious Privacy
Facebook is no stranger to Washington’s ire, and this time its stablecoin is on the receiving end. In a letter from 30 Democrats associated groups,
Invstr CEO: Facebook Will Have Anticipated Regulatory Scrutiny Over Crypto Effort Invstr CEO: Facebook Will Have
The CEO of a social investment firm believes that Facebook will have anticipated regulatory scrutiny. Kerim Derhalli of Invstr says recent issues for
US Consumer Groups Urge Regulators to Stop Facebook’s Delve in the Crypto Space US Consumer Groups Urge Regulators to
A long list of US consumer advocacy groups have called upon many of the nation’s regulators to put the brakes on Facebook’s foray into the crypto
Comments (0)
Add a comment
Comment on