European Central Bank details dangers of investing in Facebook's cryptocurrency
Every day Facebook delivers information about its next cryptocurrency. The launch date is set for the end of the first half of 2020, but the European Central Bank warns against undermining the international role of the euro by reducing its demand.
The ECB warns that the offer of Libra, Facebook's currency, is very seductive but treacherous. They believe that the legal past of Facebook, which has had to give explanations to two governments for the treatment of its customers' data, does not allow it to be a profitable proposition for citizens. Some media have assured that Facebook seeks to control a market that remains decentralized and seeks to move its finances to the network.
"The use of the pound could reduce the ECB's control over the euro, impair the transmission mechanism of monetary policy by affecting the liquidity position of euro area banks and undermine the international role of the single currency, for example. For example, by reducing the demand for it ", expressed Mersch, who is a director of the European Central Bank (ECB).
Blockchain experts have ensured that Libra, Facebook's cryptocurrency, will be anything but decentralized. Facebook will demand the data of its potential partners and will control the movements that are made based on the issuers that will control this cryptocurrency.
The main fear of the experts is that if Facebook influenced the presidential elections in the United States, it probably represents a danger to the security of the Blockchain. In other words, this idea goes further than believing in centralization, controlling the broadcast networks and the distribution capacity that Facebook will have.
The citizens of Europe are not tempted to leave behind the security and robustness of established payment channels and solutions in favor of the seductive but treacherous promises of Facebook's siren song, Mersch concluded in his speech.
At the moment, Libra has several important allies, including Visa, MasterCard and PayPal. Companies like Spotify and Uber recently joined the initiative.
