“Libra” is causing tensions throughout the world. It is a digital coin that Facebook, along with 29 other companies such as Uber tech, MasterCard and Paypal plans to launch. This is raising concerns amongst governments and central banks around the world. The fear comes from the reach Facebook has across the world and hence the use of the digital coin could spread quickly. Digital coins are an online currency that exists in digital form only and can be used to buy goods and services online and especially for gaming etc. Since this currency is not backed by any government and is not easily traced there is a bigger chance that illegal activities take place using such cryptocurrencies.
Mark Carney, the Governor of the Bank of England has recently pointed out that issues like terrorist financing and money laundering(illegally obtained money) need to be sorted out beforehand.
France as the head of G7 countries is setting up a task force to look into how cryptocurrencies (digital/ online currency that is not backed by any government) like Libra are stable and adhere to anti-money laundering laws and protect consumers.
It looks like it’s going to be a long road ahead for central banks and governments to figure out how digital currency can be made safe and solid.
Do you think digital currencies should be allowed or are will they continue to be used illegally? Tell us your views below..