Facebook’s cryptocurrency, Libra, continues to raise international opinions against, especially those who request that it has to be regulated. The last voice rising over this issue has been the governor of the Bank of Japan, Haruhiko Kuroda.
During an event in Osaka on September 23, Kuroda told business leaders that it is very important that there is international cooperation for the regulation of digital currencies, such as the Libra token.
Kuroda argues that “if Libra is introduced, it could have a great impact on society.” Also, he urged policymakers to ensure that the highest level of regulation is applied to digital currencies.
Japan’s concern about the upcoming launch of Facebook’s cryptocurrency is not a new issue. Last July, the authorities of that country organized a liaison conference, in which the Bank of Japan, the Ministry of Finance and the Financial Services Agency were part. In it, they proceeded to investigate the possible impact of the Libra token on monetary policy and financial stability.
International Clamor Against Libra: It Needs To Be Regulated
Since Facebook announced the launch of its Libra cryptocurrency, many governments around the world have spoken out against this project, showing special concern in its regulatory aspects.
It’s worth recalling that, during this month, many European finance ministers have tightened their stance towards this token. One of the most recent statements was that of Germany’s Vice-Chancellor and Finance Minister, Olaf Scholz, who declared that the government would have to reject any form of parallel currency.
Likewise, the French Minister of Finance, Bruno Le Maire, said that his country cannot allow Libra’s launch in Europe, since it would put the monetary sovereignty of the states at risk. Also, he added that the European Union needs to establish a regulation for digital currencies, in order to offset the risks posed by Facebook’s cryptocurrency.
At the beginning of September, the under secretary of the U.S. Treasury for terrorism and financial intelligence, Sigal Mandelker, said that Libra must meet the highest standards of regulatory compliance in the United States before any launch, regardless of whether the project is developing in Switzerland.
On the other hand, the head of Calibra, David Marcus, has tried to calm concerns by arguing that Libra’s goal is not to be a new currency, but a better network and payment system that run on existing currencies. He also added that money creation will thus “remain the province of sovereign nations.”