Sina Technology News, Beijing time on July 9 morning news, the US technology media CNET quoted the Indian government news that Facebook's recently released cryptocurrency Libra is facing more pressure. According to Bloomberg News on Monday, as the third largest economy in Asia, India is considering a total ban on this currency transaction.
In April 2018, all entities regulated by the Reserve Bank of India were prohibited from trading using cryptocurrencies and virtual currencies, but bitcoin personal transactions were still legal. However, there were reports last month that the Indian government was drafting a draft law and that encrypted users might face imprisonment.
Subhash Garg, India's Minister of Economic Affairs, said in an interview with Bloomberg on Saturday: “The design of Facebook currency is still unclear, but no matter what it is, as a private cryptocurrency, we are unacceptable. ”
Neither the Facebook company nor the Garg office responded to the request for comment immediately.
Last month, Facebook released its own global digital currency, which will be managed by a regulatory agency called the Libra Association and the Calibra wallet. Facebook has partnered with 27 companies in Libra, including PayPal, Visa, Uber, Coin Basic, LyFT, MasterCard, Vodafone, eBay and Spotify, and is preparing to grow the Libra Association to 100 by 2020.
Libra is scheduled to be launched in the first half of next year and can be used to purchase products, international remittances and donations.
Since its release, Libra has been facing considerable suspicion and constraints, and European and American politicians have almost immediately expressed concern about the history of Facebook data security issues.
Maxine Waters, chairman of the House Financial Services Committee and Republican member of the House of Representatives, said that Facebook “has always been indifferent to the protection and careful use of this data”. She also sent a letter to Facebook executives last week asking them to temporarily stop creating Libra's plan until security and privacy issues are resolved.
A committee of the Senate plans to hold a hearing on July 17 to discuss the issue of cryptocurrency.
According to reports, in Europe, French Finance Minister Bruno LeMaire said that if Libra is only used in trading, it is okay, but Facebook should not be allowed to create “sovereign currency”.
According to Bloomberg News, at a meeting in Portugal, Bank of England Governor Mark · Mark Carney said when talking about Libra: “Everything that works in this world will be immediately systematized. All must comply with the highest regulatory standards. ”
Last week, more than 30 organizations, including the Economic Policy Institute and the US non-profit organization, Public Interest Research Group (US PIRG), also asked Congress and regulators to suspend Libra's use until &ldquo ; profound problems & rdquo; get resolved.
Even Facebook co-founder Chris Hughes believes that once the social network's newly launched cryptocurrency is successful, the consequences are “fearful”. In June, he wrote in a column published in the Financial Times that Libra might steal control of the central bank's monetary policy and hand it over to private companies.
He wrote: “Libra will prompt people to transfer unstable local currencies to currencies that are denominated in dollars and euros and managed by companies, thereby disrupting and weakening state power. ”
“The fewer rupees or liras held by a country’s citizens, the less power the central bank has to formulate monetary policy. The more difficult it is to stimulate the local economy when economic tensions occur. ”
Hughes left Facebook in 2007. (Small)