By Facebook’s Libra is yet again in the news. After intensive efforts to regulate and block the development of Libra in America and Europe by the SEC and French Finance Minister; ripples are being felt in the Asian economy. Japan has joined the international effort seeking either blockage or regulation of Facebook’s digital currency, Libra.
Statements from the Chief of Central Bank of Japan
According to a Reuters report, Haruhiko Kuroda, governor of the Bank of Japan, has called for global cooperation in regulating Libra and he quoted further that, “If Libra is introduced, it could have a huge impact on society.”
Kuroda was attending an event in Osaka, Japan. It was during this event that Kuroda, The Central Bank Chief of Japan emphasized the need to regulate stablecoins like Facebook’s Libra.
Earlier Developments around Libra at the SEC Event
Earlier in September, Sigal Mandelker, under secretary of the U.S. Treasury for terrorism and financial intelligence, echoed the phrase when saying Libra must achieve the highest standards of U.S. regulatory compliance prior to any launch on a trip to Switzerland – the home nation of the Libra Association.
Actions taken by the G7
And back in July, a task force set up by the G7 to examine the issues raised by Libra said that rules of the “highest” standards are needed to minimize the use of digital currencies in money laundering and funding terrorism.
Previous actions by the Japan Government
Around the same time, Japan set up a working group, also to examine the issues raised by the launch of the cryptocurrency project.
Author’s Perspective
Regulation and blockage of Libra by various governments globally have only helped the press image of Libra. It has been reported negatively so many times as a dangerous stablecoin for economies worldwide. Coinbeat believes that these negative pressers about Libra is going to help Facebook eventually signup more users after Libra indeed gets launched.
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