Australia’s Central Bank Warns of Regulatory Hurdles for Facebook’s Libra

Asia Blockchain Review
July 8, 2019

The Governor of the Reserve Bank of Australia (RBA), Philip Lowe, has stated that Facebook’s virtual currency, Libra, might encounter regulatory problems before it can be offered to users.

Uncertainty Ahead for Facebook’s Virtual Currency

According to Cointelegraph, Lowe told Bloomberg that Libra may not reach mainstream status due to uncertainties from regulatory bodies.

“There’s a lot of water under the bridge before Facebook’s proposal becomes something we’re using all the time. There are a lot of regulatory issues that need to be addressed and they’ve got to make sure there’s a solid business case, so we’ve got to be careful before we jump to conclusions,” Lowe said.

In 2017, the RBA Governor had made disparaging remarks about Bitcoin (BTC), saying the cryptocurrency dominated the market because of “speculative mania,” adding that “criminals were likely more drawn to it than customers.”

RBA Governor Confident in Country’s Electronic Payment System

Meanwhile, Lowe claimed that the cryptocurrency would not attract Australians, given that the nation already has a working electronic payment system.

“I have long thought that a kind of cryptocurrency would not take off in Australia because we already have a very, very efficient electronic payments system that allows anyone of us to make bank payments to another person in five seconds just knowing their mobile phone number,” Lowe stated.

On June 21st, 2019, the RBA issued a report called “Cryptocurrency: Ten Years On”’ that outlined the reasons why cryptocurrencies were unlikely to reach mainstream status in Australia.


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