Facebook: Vitalik Buterin sees a “Wake-up call for governments” in Libra

The Facebook-crypto-project Libra has received in the past few months, considerable headwinds. Since its announcement in June, objections by regulatory authorities have been all over the world collected. Recently, the French Finance Minister Bruno Le Maire announced that she will not allow the use of Libra in your country, as they threaten the monetary sovereignty of the government. Immediately after the Declaration by France, Germany followed.

The next critic is now the Ethereum inventor Vitalik Buterin, who told his thoughts about Libra in an Interview with Globes. As Buterin to his thoughts on the ongoing Controversy was to Libra asked, he said that the current structure of Libra for the privacy looks good, as the company has no means to protect the private data of the customer.

The current working model of Libra expects its customers that they can not keep their currencies in Custody Wallets, what is only from a data protection point of view, bad, but also because it is not different from the existing conventional financial systems in which business process of the customer identification must perform. Buterin said that this could be a big Problem for Libra. Buterin said:

Libra has not yet been started, so that may change, but until then, a lot of things. The currently planned structure of Libra is not the best for privacy. You don’t really have the means to protect the privacy of the users. […] In fact, Facebook of most Libra users expected to keep their currencies in Custody-Wallets. A privacy model in such a structure does not differ Essentially from the herkömmlichenr financial system.

Buterin made it clear, however, that Libra, as it has not yet been introduced, it can work even before the official release of these aspects. Buterin Libra also called a “Wake-up call for governments”, as countries such as China were entered into action, to accelerate their national CBDC program, after Facebook had announced its Stablecoin project. Buterin said:

In my opinion, projects such as Libra, are a Wake-up call for governments who now recognize that you will not have if you revise the technology of their sovereign currencies, competition. Therefore, we now see a large interest in the creation of a sovereign digital currency.

Is against for Libra

Already last Wochte, reports surfaced that France Libra wants to block in Europe. The City of London A. M. has published, allegedly by the AFP issued a report, according to which the regulation are interested in the authorities in France to block the crypto-currency project Libra, as it represents a threat to the “monetary sovereignty”. For the opening of an OECD conference on crypto-currencies, the French economic and Finance Minister Bruno Le Maire said:

I would like to say very clearly that, Under these conditions, we are not able to approve the development of Libra on European soil.

The Cryptocurrency Libra from Facebook it was announced at the beginning of the year and should eventually be in the year 2020 was introduced. It was developed to allow people to make payments via the App-Suite of Facebook, including WhatsApp and Facebook Messenger, which are used by billions of people around the world.

Facebook has already said that it will keep up with the Start of Libra’s back, until it met the concerns of the regulatory authorities around the world. As a reaction to the recent developments, the head of communications Libra, Dante Disparte said that the comments by Mr Le Maire “underline the importance of cooperation with the regulatory authorities under”.

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