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Facebook might have had no inkling of the troubles that it would face when it first announced plans to launch its altcoin. Facebook is already mired in controversies related to privacy issues and the way it uses the data collected from millions of its users. To make things worse, the Facebook-backed cryptocurrency Libra has also started facing backlash from multiple fronts.
About a week ago, PayPal, one of the strongest supporters of Libra, also backed out from the alliance. This follows a series of ominous signs for the project. Recently the Wall Street Journal that payment service providers like Visa, Mastercard, and other partners in the project may think afresh regarding their involvement in this venture.
Regulatory Scrutiny
The criticism that Facebook-backed cryptocurrency Libra has received from countries like France and Germany have made it to the top of altcoin news. Both countries have cited the risk that Libra poses to the financial sector, which has jeopardized Libra’s authority in Europe. The finance ministers of both countries had said last month that digital currencies posed a threat to not only consumers and financial stability but also the monetary sovereignty of European countries. The European Central Bank has also announced its plans to launch a public virtual currency that would make Libra and other similar projects redundant.
Tim Cook’s Opposition to Creation of Currencies by Private Groups
In a recent interview, Tim Cook, the CEO of Apple Inc., expressed his disapproval on the idea of the creation of currencies by a private group. He said that states should continue to remain in charge of the money and not some private company. These comments from him hold a great significance in a time when the debate around privacy has gained massive momentum across the world.
Troubles With Launch in India
The Economic Times reported in June 2019 that Libra wouldn’t be launched in India. The current regulations in India have banned blockchain-based transactions. Also, there are plans to make dealing in virtual currencies punishable by a jail term of up to 10 years, along with hefty fines.
Conclusion
With so many impediments cropping up even before its launch, Facebook-backed Cryptocurrency Libra has a steep road ahead. Whether or not it would be launched at all is still subject to speculation. Unlike many others, if you are a Libra-fan, keep an eye out on the latest crypto news to know what might eventually become of the coin.
