The European Union Seeks to Legislate Libra
Date: 09 – October – 2019
Yesterday, Valdis Dombrovskis, vice president of the European Commission in charge of financial regulation, said that Libra is a systemic risk to the euro, and it will be necessary to create a regulation to prevent it from undermining Europe’s common currency and become a money-laundering tool.
Much of the concerns about Libra come from the size of the companies that support the project, not only is Facebook, but there are also companies that have a strategic role in commerce such as Visa or MasterCard, major technology companies like Uber and until a few days ago Libra was also backed by PayPal, but this week they confirmed that they were leaving the project to focus on their existing business priorities.
Valdis Dombrovskis also said that “Financial stability, monetary stability, anti-money-laundering—these are just a few aspects that need to be considered,” about Libra, and he is not the first politician to express this concerns about the project, lawmakers and regulators around the globe have expressed the same concerns, just in September Germany and France called for block Libra from the EU.
Last week the Commission sent a questionnaire to Facebook requesting more details about its crypto asset and their plan, but according to Valdis Dombrovskis, they “are still expecting to hear from them.”
It seems that the launch of Libra is going to be more complicated than Facebook expected, for the moment we will have to wait and see if the European Commission produces any rules for the crypto asset.