ECB Official Warns: Libra Could Be Very Dangerous Without Rules

ECB Official Warns that Facebook’s Libra crypto project could become very dangerous without having the proper financial regulations in place. As previously reported in the altcoin news here, Libra has been analyzed hundreds of times and still hasn’t got the approval that it is seeking.

Facebook’s motto was to break things and move fast so now regulators across the world are working fast to prevent the tech giant to develop the cryptocurrency into a ‘’regulatory void.’’ The ECB official says that it is ‘’too dangerous’’ for companies such as Facebook to develop these kinds of projects:

‘’It’s out of the question to allow them to develop in a regulatory void for their financial service activities, because it’s just too dangerous. We have to move more quickly than we’ve been able to do up until now.’’

The entire ECB executive board believes that digital currencies will represent the ‘’wake-up call’’ for regulators around the world. He believes that this could result in regulatory entities making improvements in their operations. Facebook’s plan is to launch a digital currency which will trigger central banks and all policymakers across the world. The U.S. congressional committee asked the social media giant to stop the operations regarding Libra. Also, the House Financial Services Committee noted issues that touch the security nature of the cryptocurrency and Facebook’s troubled past regarding data privacy:

‘’Because Facebook is already in the hands of over a quarter of the world’s population, it is imperative that Facebook and its partners immediately cease implementation plans until regulators and Congress have an opportunity to examine these issues and take action.’’

The House Financial Services Committee also warned that if Facebook decides and launches Libra prior to the legislative solutions, the result will be a new ‘’Swiss-based financial system that is too big to fail.’’ The committee also stated that it will further hold public hearings on crypto-related matters next week. As noted in the latest cryptocurrency news, the Reserve Bank Of Australia Governor Philip Lowe indicated there are a lot of regulatory issues regarding Libra. In Asia, the Bank of Japan also warned that Libra poses a huge threat to the current financial systems.