Japan following various world-leaders is now raising concern over Facebook’s Libra. The country has now joined the group of nations that are urging for a cooperative framework that will reduce the risks of stablecoin Libra. The news has surfaced after a meeting between officials from the Bank of Japan and various business persons in Osaka.
Facebook’s Libra against the world
Even Japan, a pro-crypto country, is now raising concern for a cryptocurrency project. The country is wary of the power a private economy as Libra might hold. Facebook’s Libra hopes to replace the existing financial system. A private company holding this degree of economic power is a terrifying idea. This has stirred concerns among various world leaders. These include France, Germany and now Japan.
The governor of the Bank of Japan, Haruhiko Kuroda, met business leaders in the country to discuss the threat posed by Libra. Kuroda stated that global cooperation is an absolute necessity in order to fight against the systematic threats posed by Libra.
Kuroda believes that although Facebook’s Libra would bring a new level of synergy, it would also bring a lot of risks with it. Japan firmly believes that Libra would directly pose a threat to government sovereignty and subsequently to national stability.
Libra officials met with regulator prior to the public announcement; regardless Libra faced constant criticism from regulators across the globe. Calibra chief David Marcus is in a continuous struggle of convincing regulators that Libra is not a threat yet his efforts bore little fruit. With each passing day, the chances of Libra launching decrease, yet Facebook is not a company one can underestimate.
Facebook’s Libra aside the world still needs international cooperation
Leaving the issue of Libra aside, a cryptocurrency market can grow more quickly in a universally regulated market. An internationally regulated market would ease complications between cross border transactions and promote business growth. From a macro perspective, it would make more sense to keep regulations consistent. Regardless, universal regulation is still light years away as some countries are promoting crypto while others like India are imposing bans on the industry.