European Union’s antitrust chief takes aim at Facebook’s Libra, claiming that the project is creating a “separate economy.”
Facebook’s Libra the global punching bag
Since the announcement of Facebook’s Libra, the project does not has many supporters. The project seemed to be a threat to global finance, and many nations, including Germany, France, and Japan, are against it. Regulators believe that the project is a threat to the global financial industry.
Many believe that a company such as Facebook should not have access to any more user data. The company’s past does not give it much credibility seeing as it was involved in the Cambridge Analytica scandal. Moreover, the company has been accused of various accusations about stealing or not being able to protect user data.
EU antitrust chief: Projects like Facebook’s Libra raise “many, many questions.”
In an interview with Denmark’s finance industry union known as Finansforbundet the antitrust chief of the European Union, Margrethe Vestager spoke about Libra. Vestager stated that a company releasing its own currency raises “many, many questions.”
Although she did not shut down the idea of Libra entirely Vestager stated that the project is still a concept that makes it hard to asses the risk it poses. Vestager wanted to asses the project accurately to determine whether the project poses a threat to financial stability. The EU commissioner has started an investigation into Facebook’s Libra.
The biggest concern regarding Libra is that the project may create a separate online economy that would be nearly impossible to regulate. If it turns out to be true, then the network would be used for illegal transactions that are a huge concern for regulators.