German central bank President in favor of Facebook Libra at G7

The President of Bundesbank, Jens Weidmann encouraged others to enable Libra to perform before judging it while speaking about Facebook Libra at the G7.

Bundesbank is the central bank of Germany while Libra is Facebook’s digital currency that is expected to be launched sometime next year.

Since the project was announced, Libra has met high criticism. The project received much more opposition in the United States as the man behind Libra David Marcus faced two inquisitions in the last week alone. He was under inquisitions before the Senate as well as the House while also receiving criticism from the US treasury secretary.

On the other hand, Weidmann is positive towards Libra and confused why his counterpart in the US is so skeptical about cryptocurrencies like Libra. Weidmann then added that if such projects provide exactly what they advertise they can have a positive effect on the market and therefore good for the consumers.

Moreover, he stated that it can be bad if the regulators suppress such projects before their “details have been clarified”. Weidmann’s statement came just a week after news spread that political parties may launch their own cryptocurrency backed by Euro and operated by central banks.

Facebook Libra around the globe

Although US regulators have focused on banning such projects that may prove a threat to financial stability. Other countries such as Japan and China have followed suit like Libra and therefore announced their own digital currency systems.

Japan is currently working on a project to establish a system that can replace the SWIFT network but on a blockchain network through decentralized ledger technology.

China, on the other hand, is working on finalizing the state-backed cryptocurrency. However, it is not decentralized rather is the digitized version of Yuan.

However, Weidmann is not the only person who is speaking in the favor of Libra as Rep. Patrick McHenry of North Carolina invoked Bitcoin inventor Satoshi Nakamoto, lauding blockchain technology and saying its dominance was inevitable.