Facebook Libra cryptocurrency raises concerns

Regulators, politicians, lawmakers and the US Central Bank are examining Facebook’s cryptocurrency, Libra, following its announcement last month.

Libra is set to launch in the first half of 2020 and will be used to purchase products, send money internationally and make donations.

The newly announced Libra has already raised “serious concerns”, said Federal Reserve Chairman Jerome Powell. The considerable skepticism and criticism by US and European politicians was mostly due to Facebook’s past with data privacy issues. 

Powell also reported that both the Federal Reserve System and a separate panel called the Financial Stability Oversight Council will meet to discuss Libra with global policy makers. 

In the European front, French Finance Minister, Bruno Le Maire believes that Libra could work if its use is limited to transactions but Facebook should not be allowed to create a “sovereign currency”. 

The Libra blockchain will be global but not available to US-sanctioned countries, or countries that ban cryptocurrencies.