Facebook introduced its vision for a global cryptocurrency called Libra two months ago, and since then, regulators have piled criticism onto the project. They may have their own reasons.
Global privacy regulators, central bankers and finance ministers have voiced concerns with the proposed Libra cryptocurrency because it could, at least in theory, drastically change or even undermine their jobs. As a result, investors, crypto enthusiasts and regulators themselves say Libra has raised the stakes for financial authorities, forcing them to take a more serious look at digital currencies.
Facebook launched Libra in collaboration with 27 other companies in June. The digital currency would be overseen by an independent nonprofit based in Switzerland called the Libra Association, though many details about how that organization would operate remain unclear. The goal of the project, Facebook says, is to provide a fast, low-cost way for people around the world to transfer money, especially those who don’t have access to traditional banking services.
