European Central Bank officials found a number of problems with Facebook’s cryptocurrency Libra. From the number of warnings issued for Libra, it is the latest.
Yves Mersch, a Luxembourg member of the ECB’s executive board was giving a speech at Frankfurt legal conference. He stated that people of Europe should use the safest means of established payment solutions and channels. Also, Libra was a product of the very same people who were in front of legislators who were responsible for the threat from mishandling the personal data of users on Facebook, a social media platform.
He also said that there will be a handful of influential people who will issue Libra coins. All the big corporate giants cover a maximum of the financial tech, eCommerce and telecommunications. The members of Libra association comprise Mastercard, Uber, eBay and PayPal.
In such a setup, it becomes difficult to trust the decentralization phenomena of cryptocurrencies. But with Libra, it will be highly centralized and will be controlled by Facebook and its partners.
Unlike Libra, public fiat currency is also centralized but it is backed by “sovereign entity and a centrally controlled authority” said Mersch.
Corporate shareholders will abuse the privileges given to them and accessing them to private data can be dangerous.
In fact, European policymakers are not only the ones who oppose Libra, in April 2018, Reserve Bank of India had also raised a concern on the security of currency and banned it in the country.